As of December 2020, Grayscale Investments, LLC, an American digital currency asset management firm, had accumulated approximately half of all the bitcoins in existence.
In other words, if Bitcoin were a country, Grayscale would be its central bank.
Founded in 2013, Grayscale is a subsidiary of Digital Currency Group, Inc., which also owns CoinDesk.
Grayscale offers six investment trusts for purchase by accredited investors, four of which invest in single digital currencies (Bitcoin, Ethereum Classic, Litecoin, and Bitcoin Cash) and two of which invest in multiple digital currencies (Digital Large Cap Fund and Ethereum Trust).
As of September 2020, the firm also managed two private funds (Horizon Blockchain Games Fund and Galaxy Digital Assets Fund).
NOTE: This warning note is intended to provide a reminder to anyone considering investing in Bitcoin or any cryptocurrency.
WARNING: Investing in Bitcoin or any other cryptocurrency is high-risk and speculative. Before investing, it is important to understand the risks associated with investing in digital currencies. Additionally, it is important to research and familiarize yourself with the company, Grayscale, and its holdings of Bitcoin before making any decisions. Investing in cryptocurrencies can result in large losses and should not be undertaken lightly.
In December 2020, it was reported that Grayscale had accumulated approximately half of all the bitcoins in existence. This is an unprecedented accumulation of a single asset by any financial institution.
Grayscale’s accumulation of bitcoin has been attributed to several factors: 1) the institutionalization of bitcoin; 2) the lack of alternative investment vehicles for digital currency exposure; and 3) the company’s aggressive marketing campaign.
The institutionalization of bitcoin refers to the increasing number of businesses and organizations that are accepting bitcoin as a form of payment or investment. This trend began in 2017 when Japanese conglomerate GMO Internet announced that it would accept bitcoin as payment for a variety of services.
Since then, major companies such as Microsoft, AT&T, and Overstock have all announced plans to accept bitcoin as payment. These companies have helped legitimize bitcoin and attract new users to the ecosystem.
The lack of alternative investment vehicles for digital currency exposure is another factor that has led to Grayscale’s accumulation of bitcoin. For accredited investors looking to get exposure to digital currencies without directly purchasing them on an exchange, there are few options besides Grayscale’s investment trusts.
The company’s marketing campaign has also been successful in attracting new investors.
10 Related Question Answers Found
As of June 2018, Grayscale Investments, LLC (“Grayscale”) is the largest digital currency asset manager with $2.1 billion in assets under management.
1 Grayscale offers ten investment products including six single-asset funds (Bitcoin Investment Trust [OTCQX: GBTC], Ethereum Classic Investment Trust [OTCQX: ETCG], Horizion Token Fund [OTCQX: ZEN], Bitcoin Cash Investment Trust [OTCQX: BCHG], Litecoin Investment Trust [OTCQX: LTCN], and Ethereum Investment Trust [OTCQX: ETH]) and four diversified funds (Digital Large Cap Fund, Digital Small Cap Fund, Digital Asset Investment Fund, and Blockchain Innovators Fund). In March 2018, Grayscale launched four new single-asset investment trusts, including the Bitcoin Cash Investment Trust. The trust is currently the only investment vehicle for accessing bitcoin cash (BCH) and trades on the OTCQX® market under the ticker “BCHG.”
According to a recent article from CoinDesk,2 as of June 11, 2018, Grayscale held approximately $600 million in bitcoin cash (BCH), or roughly 5 percent of the total supply.
Grayscale is one of the largest digital currency managers and is responsible for about 2% of all Bitcoin in circulation. That’s because the firm behind the Grayscale investment trusts buys and sells BTC for its clients. Since mid-2017, when Bitcoin was near its all-time high, Grayscale has been on a shopping spree, adding an average of 17,000 BTC to its holdings every month.
Gray Scale Bitcoin is a digital asset management firm that offers investment opportunities in Bitcoin and other digital assets. The company was founded in 2013 by Timothy C. Draper, who is also the founder of the VC firm Draper Associates.
A Bitcoin ETF would be a fund that tracks the price of Bitcoin and is traded on a stock exchange. This would give investors exposure to Bitcoin without having to buy and store the underlying asset. The U.S.
The Grayscale Bitcoin Trust is an investment vehicle for individuals seeking exposure to bitcoin without having to buy, store, or manage the underlying digital currency. The Trust is sponsored by Grayscale Investments, LLC (“Grayscale”), a digital currency asset manager. The current premium for the trust is 1.03%, meaning that for each share of the trust you own, you are paying $1.
03 more than the underlying value of the bitcoins held by the trust. .
Grayscale Bitcoin Trust is a digital currency investment product that enables investors to gain exposure to the price movement of Bitcoin (BTC) without the challenges of buying, storing, and safekeeping BTC. The investment objective of GBTC is for the shares to reflect the performance of the Blended Bitcoin Price Index less the Trust’s expenses and liabilities. The Blended Bitcoin Price Index is a rules-based methodology that averages the U.
When it comes to investing in Bitcoin, there are a few different options available. One option is to invest in the Grayscale Bitcoin Trust. The Grayscale Bitcoin Trust is a trust that invests exclusively in Bitcoin and it is one of the most popular ways to invest in Bitcoin.
As of October 2020, the net asset value (NAV) of Grayscale Bitcoin Trust is $9.8 billion. The trust is the largest digital currency asset manager in the world and invests exclusively in bitcoin. NAV is calculated by dividing the trust’s net assets by the number of shares outstanding.
Grayscale Bitcoin Trust is a digital currency investment vehicle that holds and invests in Bitcoin. The trust is managed by Grayscale Investments, LLC.
, a digital currency asset management firm. The trust’s objective is to track the performance of the price of Bitcoin, less the expenses of the trust’s operations.
Bitcoin Cash Trust (BCHG) is an investment trust that enables investors to gain exposure to the price movement of Bitcoin Cash (BCH) without having to buy, store or manage the underlying cryptocurrency. The trust is currently the only investment product available that offers exposure to BCH. BCHG is managed by Grayscale Investments, LLC, a digital currency asset manager.
