Grayscale is on fire and rightly so as the platform’s BTC holdings increased more than 2x, and Assets Under Management [AUM] is up more than 4x. The institutional crypto giant Grayscale revealed that it now holds more than 500,000 BTC in its Bitcoin Trust.
This news comes after Grayscale marked this quarter for accumulating its most massive inflow of capital of which its Bitcoin Trust’s assets Under management was observed to be the fastest-growing investment products. Besides, the Managing Director at Grayscale Investments, Michael Sonnenshein recently tweeted that the team has alone accumulated more than $115 million worth of Bitcoin on the 12th of November alone.
Notifying the same, Grayscale had further revealed that it owns $8.35 billion worth of Bitcoins which represented nearly 2.7% of Bitcoin’s outstanding supply. According to the data compiled by Bybt, shares in the Grayscale Bitcoin Trust currently represent $15.62 worth of Bitcoin each, with a marker price per share of $18.86 and a premium rate of 20.74%.
Grayscale Bitcoin Trust’s Aggressive Accumulation
Bitcoin Trust which happens to be Grayscale Investments’ popular investment vehicle has remained the most widely selected investment product this year. In its most recent report for the third quarter, the total investments into the digital asset managers fund in those three months alone accounted for more than a billion dollars. Upon adding the first and the second quarters, Grayscale reached record-breaking figures.
This has, in turn, increased the share price of Grayscale Bitcoin Trust [GBTC] by an astounding 63% since the 1st of October 2020.
Launched more than seven years ago, Grayscale is a US-based crypto investment firm that is one of the largest purchasers of Bitcoin in the world. Its rise to immense popularity can be attributed to the fact that the investors were potentially buying the asset as a way of indirectly owning Bitcoin because of several reasons.
Investing in a Bitcoin Trust essentially enables individuals to gain exposure to the cryptocurrency without having to worry about how to store it, and hence conforming with the law or filing separate taxes. Additionally, Grayscale’s Trust offers its investors exposure to the crypto in a tax-friendly way since certain IRA, Roth IRA, as well as other brokerages and investor accounts, would not likely give tax breaks on Bitcoin investment but, will give them for investments of publicly traded trusts.