According to the latest application to the SEC, crypto asset management company Grayscale Investments has added 19,879 bitcoins in the last eight days, amounting to approximately $ 184.9 million.
In total, the Grayscale Bitcoin Trust (GBTC) already has nearly 400,000 BTC under control, which is 2.17% of the total asset supply, which currently amounts to 18.4 million coins.
Is Grayscale really buying all the new coins?
Independent cryptocurrency researcher Kevin Rook has estimated that Grayscale bought three times more BTC than it dug in the same period.
Just last week were issued 7.081 coins, which brings the total amount of Bitcoin introduced into circulation after the reduction of supply in May (halvinga) to 39,544 BTC.
There is some skepticism about Grayscale’s accumulation of BTC, as some critics have suggested that they are simply hedge fund managers playing a long-term arbitrage game and the company is not using even a third of the newly minted coins.
Investors in Grayscale wait a six-month period before they can sell their shares in GBTC.
A reddit post examined the grounds for skepticism about the claim that Grayscale accumulates 150% of BTC’s new offering.
“If you look at their Q3 (third quarter) digital asset report for 2019, you can see that 80% of their capital inflows were ‘of the same type’ – in other words, they allow you to send them BTC (instead of USD) for shares in GBTC Also, 84% of investors are institutional (mostly hedge funds)
So, what actually happens Hedge funds send their BTC to Grayscale (certainly occupied on margin) and after 6 months they can withdraw their money (GBTC is traded with a premium for BTC), pay off their margin loan and collect the remaining spread …
Assuming that 80% of the inflows are in BTC, as in Q3 2019, then the statement that ‘ 150% of the new offer after the buying is bought by them ‘becomes about 30%. “
Investors cannot sell Bitcoin
Shares of the Grayscale Ethereum Trust recently rose 65 percent from their highest level of $ 239 after the expiration of the block period.
Although there are some concerns about how this will affect the price of Bitcoin, crypto analyst Whale Panda explains that investors may sell their shares, but BTC will remain locked.