Soon, Grayscale is going to own all of the bitcoin!

This past week Grayscale added 19,879 BTC to their Bitcoin Trust.

That number may not mean much to you on first glance, but keep in mind that bitcoin miners only produced 7,081 BTC during the week.

That means that Grayscale alone added almost 3x the weekly number of newly created BTC, and that's just one fund.

(Source: https://twitter.com/kerooke/status/1276251991698792464)

But wait, there's more...

That newly added 19,879 BTC makes a total of 53,588 BTC added since the halving.

For some perspective, BTC miners have produced 39,544 BTC total since the halving.

Which means...

Grayscale has acquired 135% of all the newly created BTC since the halving!

And again, remember, this is just the demand from one fund... well sort of.

There is also the fact that Grayscale allows "in kind" transfers where people transfer them their bitcoin in exchange for shares of GBTC.

In this instance the same number of BTC is till bought, just not by one fund. It's bought by everyone who is transferring their BTC into Grayscale, which according to their latest filing was close to 80% of the newly added BTC.

Though keep in mind those shares are locked for 6 months, so anyone doing a like-kind transfer is locking up their bitcoin for 6 months.

The total BTC holdings for Grayscale now stands right around 400k BTC.

Ready for a fun fact?

If this trend continues, Grayscale will own 3.4% of the entire BTC supply by this January and 10% of the entire supply of BTC by the next halving in 2024.

How's that for a neat little mind blower?

Overall, the money flowing into Grayscale is a great proxy for institutional involvement as they are the ones buying these shares of GBTC from Grayscale.

Which means the institutions are really starting to show up.

Given so much of the supply is being locked up by one player, bitcoin is looking more and more like a coiled spring just waiting to be unwound.

Give us a nice little dip in the near term and then it's off the to races by the end of the year.

Stay informed my friends.

-Doc

Posted Using LeoFinance