- June 26, 2020
- Posted by: icoblock
- Category: News
The popular cryptocurrency investment company oriented toward institutions, Grayscale, has reportedly added another 19,879 BTC to their Bitcoin Trust in the last week alone.
The fund continues to increase its exposure to the leading cryptocurrency, as it now manages about 400,000 BTC.
Grayscale Buys $185 Million Worth of BTC
Grayscale’s Bitcoin Trust continues to grow, according to popular researcher Kevin Rook.
“Grayscale added 19,879 BTC to their Bitcoin Trust since last week (53,588 BTC since the halving).
Bitcoin miners only produced 7,081 BTC since last week (39,544 BTC since halving).
That’s almost 400,000 BTC under management for GBTC.” – the researcher explained on Twitter.
As CryptoPotato recently reported, the company stated that investors are buying Bitcoin as an inflation hedge amid massive money printing.
According to the official market performance page of GBTC, the current amount of Bitcoin holdings per share is $8.83, while the market price per share is currently $10.14. This means that investors are willing to pay a premium of almost 15%.
Bitcoin’s price currently trades around $9,200, putting the total dollar value of Grayscale’s recent purchases at just shy of $185 million.
It’s Not Just Bitcoin, Grayscale Buys ETH Too
While the Bitcoin Trust is the company’s flagship product, Grayscale is buying a lot of ETH as well.
CryptoPotato reported earlier this month that the company had bought nearly half of the ETH mined in 2020.
However, what’s interesting about this is that the premium is substantially higher. Earlier this month, it surged to about 750%, which means that investors were paying $2,000 for 1 ETH while its market price was a bit over $200.
Currently, the holdings per share are $21.82 while the market price is $98.29, which means that investors are still paying 350% on top of the regular market price for ETH.
Yet, despite all of the above, the market seems unable to take off. Bitcoin has been struggling at these levels for quite some time and has failed to breach $10,000 on numerous occasions. It’s worth considering where the price would be if it wasn’t for the immense buying pressure from Grayscale.