Grayscale bitcoin-trust grows to 450,000 BTC, about 2.4% of current issuance

Over the past week, the Grayscale Investments bitcoin trust grew by 17,000 BTC (~$184.5 million at current rates). Such data comes from the resource Bybt based on the manager’s figures.

Grayscale bought 17.1k BTC in the last 7 days.#Bitcoin pic.twitter.com/9GS9tOQxZu

— Bybt (@bybt_com) September 27, 2020

As of September 27, the GBTC bitcoin trust held 449,900 BTC, worth $4.88 billion.

GBTC bitcoin-trust position volume. Data: Bybt.

Since GBTC’s creation on September 25, 2013, the company has issued 441,417,400 shares, each representing 0.00095671 BTC.

Investors in the bitcoin-trust can invest either in fiat or in-kind, by depositing cryptocurrency in exchange for GBTC shares.

According to Grayscale Investments, in Q3 2019, 80% of GBTC investments went to the second option.

In the Q2 2020 report, the ratio is not disclosed. However, according to the company, inflows into GBTC were comparable to the value of 70% of the bitcoins mined by miners during that period.

After the third halving in May 2020, the bitcoin-trust’s growth rate had already outpaced the issuance of the first cryptocurrency.

The current increase in Grayscale’s reserves comes as Bitcoin’s price retraces after an unsuccessful attempt to hold above $12,000. Since then, the cryptocurrency has traded in a range of $9,800-$11,200.

449,900 BTC in Grayscale’s possession accounts for 2.15% of the total bitcoin issuance and nearly 2.5% of the current supply.

According to Coingecko, at the time of publication, 18,502,268 BTC have been issued from the total issuance cap of 21 million coins.

Many users are waiting for a sharp reduction in the supply of coins available for sale. They expect this to push Bitcoin’s price higher.

And Grayscale knows that!! Whatever you buy the Bitcoin at current price, if there’ll be limited on no new supply in coming quarters, BTC is bound to go up minimum x2 Fold. And they know it.

— Rabbit (@rosachde1) September 27, 2020

As reported, the number of bitcoins generated through mining has surpassed the 18.5 million mark. Available to mine remains less than 2.5 million coins, or just under 12% of the total issuance.

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