Grayscale is on track to control 5% of all Bitcoin’s circulating supply by the end of 2021 with a record flow of $215 million last week.
All indications are that Grayscale’s Bitcoin (BTC) Trust will reach 500,000 BTC by the end of 2020.
Last week, Grayscale posted a record inflow of $215 million (15,907 BTC) which exceeded all previous investments in the fund. The company now has $6.7 billion (481,711 BTC) at the close of this edition.
If the company continues with last month’s growth rate of 32,000 BTC, Grayscale will have 500,000 BTC (2.7% of current supply) in three weeks. By the end of next year, if the rate is consistent, Grayscale could control 926,600 BTC, which is equivalent to 5% of Bitcoin’s current total supply.
The fund, created in September 2013, has had explosive growth this year, with its assets under management, or AUM, increasing from $1.9 billion to $4.7 billion in the first nine months of 2020. Since Grayscale’s third quarter report, the AUM of its Bitcoin fund has grown by an additional $2 billion.
Nearly 70% of Grayscale’s total weekly inflows were invested in its Bitcoin Trust over the past three quarters. The 12-month average of Bitcoin Trust’s weekly inflows grew from $39.5m to over $55m in Q3, 84% of which were attributed to institutional investors.
Last week, Grayscale published its second Bitcoin Investor Survey, in which the firm found that US investors interested in investing in BTC had grown from 36% in 2019 to 55% in 2020.
Grayscale has far more Bitcoin than any other publicly traded company (although a fund is not directly comparable to a company that has BTC as a reserve asset). As of October 13, the remaining 12 companies together hold approximately 150,000 BTCs, with notable holdings of Microstrategy (38,250 BTCs), Mike Novogratz’s Galaxy Digital (16,551 BTCs) and Jack Dorsey’s Square (4,709 BTCs).
Not only is it @Square, in 2020 there have been more than 10 public companies investing in Bitcoin, with a total value of more than 6 billion dollars, equivalent to almost 600,000 BTC.