Last week Grayscale reported that its product known as Bitcoin Trust recorded the largest inflow of money at $215 million.
The crypto community sees the possibility that soon the company will control 5% of the Bitcoin supply.
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Grayscale takes over Bitcoin
On Monday a user on Twitter published a very interesting graph where we can see the flow of input each week in the Bitcoin Investment Trust (GBTC).
During the week of October 27th, the crypto company received an inflow of USD 214 million, or 15,907 Bitcoin; which indicates a constant increase in the amount of shares issued.
This raised the amount of money under management (AUM) of the GBTC to USD 6.55 billion.
As we saw in the previous Tweet, Grayscale currently has $7.7 billion in AUM among all the crypto products it offers. And, as mentioned above, the Bitcoin Trust leads with USD 6.55 million.
Grayscale manages $6.5 billion in crypto but disappointed in October
Projections
The issue under discussion is what this situation implies if we project it into the long term.
If Grayscale manages to maintain last month’s growth rate of 32,000 BTC, the firm could maintain 500,000 BTC (2.7% of current supply) within three weeks.
And, looking even further ahead, by the end of next year, if the rate is constant, Grayscale could control 926,600 BTC, which is equivalent to 5% of Bitcoin’s current supply.
The interest that the company has aroused, both in the crypto community and traditional investors, is evident. Mainly 2020 has been a year where Grayscale has experienced explosive growth.
In fact, the company recently submitted its Q3 report and since then, the Bitcoin Trust AUM has increased by an additional $2 billion.
And the thing is, at least for now, there is reason to believe that Grayscale’s growth rate will be maintained or even increased in the coming months.
Bitcoin has been the main ally in this process as it has increased interest from institutional investors.
In this regard, last week Grayscale published a study where it found that U.S. investors who were interested in investing in BTC had increased from 36% in 2019 to 55% in 2020.
Thus, the role that Grayscale plays in the crypto market, especially Bitcoin, is very relevant. Currently, it is the company with the largest amount of Bitcoin in the stock market.
And, if the growth rate is maintained or increased, Grayscale would be increasing its control over Bitcoin in a way that some might be concerned about.
What do you think the impact will be of Grayscale having about 5% of the circulating supply of Bitcoin?