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Grayscale’s Bitcoin [BTC] Investment Trust holds 1.16% of total Bitcoins in circulation




Grayscale's Bitcoin [BTC] Investment Trust holds 1.16% of total Bitcoins in circulation
Source: Unsplash

Bitcoin Investment Trust sponsored by Grayscale Investments, LLC aka Grayscale, according to the recent research by Diar shows that the trust has been accumulating Bitcoins in 2018 despite the brutal bearish market.

Grayscale Bitcoin Investment Trust [GBTC] kicked off the month of December under $1 billion for the first time since its inception in 2013. According to their research published on December 3, 2018, the total Bitcoin holdings for Grayscale as on December was 203,000 Bitcoins and when compared to the 17.4 million BTCs in circulation it controls over 1.16% of the total Bitcoins. Grayscale’s total holdings in Bitcoins alone are worth in excess of $783.81 million.

Source: diar, Volume.2 Issue.47

The BIT in one of its documents said that the trust was created for investors who were interested in investing in Bitcoin through a traditional investment vehicle. The document stated:

“The Trust was created for investors looking for Bitcoin exposure. Bitcoin Investment Trust’s shares are among the first securities solely invested in, and deriving value from, Bitcoin. Grayscale has assets under management of $0.9 billion.”

According to the website, Grayscale was founded in 2013, and GBTC quotation began on May 4, 2015. The Bitcoin holdings per shares for GBTC is currently trading at $3.86 after reaching an all-time high of $18.94 per share in the peak time for Bitcoin. The shares for GBTC reflect the closing price of BTC which is calculated daily at 4 pm ET.

Mati Greenspan, a senior analyst at eToro acknowledged the holdings in a tweet. It stated:


Greenspan also tweeted out saying that eToro has also been busy accumulating Bitcoins despite the bear market.

The diar research also shed light on other investments of Grayscale stating:

“Grayscale’s other cryptocurrency products have yet to find solid interest. The current Assets under Management for all 8 products sits at a tiny 56.4Mn, a notch over 6% of the sponsor’s total. This has in fact now decreased from 8% when Grayscale launched its Zen Fund.”

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


Bitcoin’s volatility – an indication of growth or regression?

Biraajmaan Tamuly



Bitcoin's volatility indicated to be a key aspect of its current success
Source: Pixabay

Market volatility plays a huge role in the financial ecosystem of assets and cryptocurrencies are regularly linked to its predominant effect. Whenever Bitcoin exhibits a rapid price movement in the market, the majority of the critics tagged the digital currency with extreme volatility and state that it would eventually lead to its downfall, since crypto assets cannot be trusted on a long term basis.

This assumption was recently widely questioned as data showed that over the last few months, the volatility rate had actually decreased for Bitcoin but the community continued to talk against the coin’s development solely on the basis of the crash witnessed by BTC after the bull run of 2017.

Pierre Rochard, a bitcoin enthusiast, recently spoke about the situation and stated, that the volatility might actually be one of the reasons why Bitcoin was starting to find prominent success in the market.

It was suggested that Bitcoin had been accumulating value over the years through various implementations and at specific time frames, short-term traders were causing an effect on the price, which would cause the “incidental price surge”. The price surge would then undergo correction and witness a fall but the price would continue to grow at a progressive rate.

The aforementioned reason can be backed by the fact that Bitcoin had indeed outperformed the likes of commodities like gold in the recent market analysis, and it was released that Bitcoin attained more profit in the long-term returns and risks asset trade in comparison to the S&P 500.

A recent data also exhibited that since 2013, any investment that included 5 percent Bitcoin to 95 percent fiat currency gathered more returns and lesser risk than the S&P 500; which also witnessed losses in 2017.

Twitter user @1Mark Moss indicated that Bitcoin was growing at it’s natural growth rate and stated,

“The volatility is the difference between perception and reality. And the reality is BTC continues to progress, just not as fast as the perception makes it seem sometimes… just part of the natural evolution.”

However, another user @JordiMorris1 explained that the people had more to do with the volatility and anything else. He said,

“The relationship of people towards Bitcoin is volatile. Bitcoin is predictible by nature, its production is stable independently of how crazy people go about Bitcoin. No sense to blame on Bitcoin.”

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