/Grayscale Trust sees largest-ever weekly inflow, nears 500K BTC in total

Grayscale Trust sees largest-ever weekly inflow, nears 500K BTC in total

Grayscale’s Bitcoin (BTC) Trust is on track to reach 500,000 BTC by the end of 2020. 

Last week, Grayscale saw a record inflow of $215 million (15,907 BTC) that surpassed all previous investments into the trust. The firm now holds $6.7 billion (481,711 BTC) as of the time of writing.

Should the firm continue last month’s growth rate of 32,000 BTC, Grayscale in on-track to hold 500,000 BTC (2.7% of the circulating supply) within three weeks. By the end of next year, if the rate is consistent, Grayscale could control 926,600 BTC — equal to 5% of Bitcoin’s total current supply.

Grayscale’s Bitcoin Trust investments 2020. Source: Grain of Salt

The trust, created in September 2013, has seen explosive growth this year, with its assets under management, or AUM, growing from $1.9 billion to $4.7 billion in the first nine months of 2020. Since Grayscale’s Q3 report, the AUM of its Bitcoin Trust has grown by an additional $2 billion.

Almost 70% of Grayscale’s total weekly inflows were invested into its Bitcoin Trust over the past three quarters. Bitcoin Trust weekly inflows grew from a 12-month average of $39.5 million to more than $55 million in Q3, 84% of which was attributed to institutional investors.

Last week, Grayscale published its second Bitcoin Investor Study, in which the firm found U.S. investors that were interested in investing in BTC had grown from 36% in 2019 to 55% in 2020.

Grayscale holds vastly more Bitcoin than any other listed company (although a fund isn’t directly comparable with a company holding BTC as a reserve asset). As of Oct. 13, the remaining 12 companies combined hold approximately 150,000 BTC, with notable holdings from Microstrategy (38,250 BTC), Mike Novogratz’s Galaxy Digital (16,551 BTC) and Jack Dorsey’s Square (4,709 BTC).

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