Institutional interest in cryptocurrencies, especially Bitcoin (BTC) has spiked in recent times as new data shows that the amount of BTC in Grayscale Bitcoin Trust (GBTC) has increased by more than 60,000 BTC in the last 100 days.
Since early February, the rate of BTC acquisition by the digital assets management firm has skyrocketed, with the firm adding more than 600 BTC to its custody daily.
On February 7, 2020, GBTC had 283,192 BTC in its custody. Since then, the firm has not looked back in acquiring more BTC. Grayscale accelerated its BTC acquisition in April and May, recording 312,886 BTC and 323,262 BTC on April 23 and May 1, respectively.
At the moment, GBTC holds 343,954 BTC, which shows that the firm has amassed a total of 60,762 within 100 days and currently controls 1.87% of the total BTC supply. The total amount of Bitcoin in GBTC implies that the company has $3.3 billion of Assets Under Management (AUM).
Interestingly, Grayscale making an addition of over 60,000 BTC within the last 100 days, shows that the firm has progressively bought about 33-34% of all new-minted BTC within the period.
Coinfomania reported earlier this month that Grayscale and Jack Dorsey-led Cash App bought over 52% of Bitcoins issued in the first quarter of the year.
Grayscale Bitcoin Trust (GBTC) is a closed-end investment fund that focuses exclusively on Bitcoin. The initiative allows investors to get exposure to BTC through a traditional investment vehicle.
More Institutional interest in crypto
Since its inception, the firm has recorded significant achievements in the cryptocurrency industry, including publishing a groundbreaking financial report for 2020 Q1.
At the time, Grayscale noted that the $503.7 million revenue it raised in 2020 Q1 came mostly from institutional investors, a feat that shows that cryptocurrency is gradually gaining institutional support.
Factors such as the growing economic uncertainties caused by the coronavirus (COVID-19) pandemic, as well as the recently concluded Bitcoin third halving, an event that saw miners’ reward slashed by 50% contributed to the increased demand of BTC.
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