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.
In December 2017 alone, Grayscale purchased 48,000 BTC—worth around $290 million at the time. That was just over 2% of the total number of Bitcoins mined that month.
Grayscale’s buying spree hasn’t stopped since then. The firm now holds more than 356,000 BTC, worth over $2 billion at current prices.
That’s equivalent to 1.8% of all Bitcoins mined so far. .
While it’s not known who all of Grayscale’s clients are, the firm provides monthly reports on the composition of its trusts. From these reports, we know that institutional investors make up the majority of its client base.
In recent months, as Bitcoin’s price has risen once again, so too has Grayscale’s purchasing activity. In May 2021 alone, the firm added 21,684 BTC to its holdings—worth around $1 billion at current prices.
This level of buying activity suggests that institutional investors remain confident in Bitcoin’s long-term prospects despite the volatile price swings we’ve seen in recent months. And with Grayscale continuing to scoop up large amounts of BTC every month, it seems likely that the firm will remain one of the largest holders of Bitcoin for the foreseeable future.