Institutionals have Bitcoin fever – The Grayscale Cryptonics Investment Fund is no longer stopped in its buying frenzy. The fund has just added a new (big) ladle of Bitcoin for its products for professional investors.
17,100 more bitcoins for Grayscale
The Dantesque buying pace of the Grayscale investment fund continues to grow. According to bybt, a data aggregation site for cryptos-derived products, the firm has increased its stock by 17,100 BTCs in less than 3 days, or nearly $183 million at current rates.
Grayscale Bitcoin Reserves –
In total, Grayscale would now own 449,900 Profit Revolution or approximately $4.8 billion in its Grayscale Bitcoin Trust (GBTC).
This represents 2.4% of all bitcoins issued from the inception of the network in 2009 to date.
Now $6 billion of cryptos under management
Grayscale offers shares in other cryptos funds in its possession: Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Horizen (ZEN), Stellar Lumens (XLM), Ripple (XRP) and Zcash (ZEC).
In total, these funds together represent $6 billion in crypto-assets under Grayscale’s management, according to an update as of September 29.
It should be noted that all shares of Grayscale have a premium. Indeed, as these shares allow professional investors to gain exposure to cryptos without having to manage storage or other technical aspects, they are willing to pay a premium over the market price of cryptos.
For example, the premium for the shares in the Bitcoin de Grayscale fund is more than 7%, the premium for the shares in the Ethereum (ETHE) fund is 22%, and for the Litecoin (LTCN) fund, it is even more spectacular: +610% compared to the value in litecoins backed by the shares. Probably because, unlike Bitcoin and Ethereum, there are few derivative alternatives on the latter.
Inter-institutional investors are more and more fond of cryptos and Grayscale has to buy more and more cryptos. Considering the fact that large companies, like MicroStrategy, are also starting to build up reserves of bitcoins, this will inevitably end up impacting prices, even if these purchases are generally made over the counter (OTC).