Grayscale Breaking Records: Bitcoin Trust Adds Over $1 Billion in a Week

Grayscale continues to break records with its Bitcoin Trust as the company has attracted inflows of over $1 billion in BTC from institutional clients in a week.

Additionally, the company seems to be preparing to launch several new cryptocurrency trusts for Chainlink, Tezos, and more.

Grayscale’s BTC Trust Inflows To A New Record

CryptoPotato reported earlier that the leading digital asset manager registered its best quarter to date in Q4 2020 with the most substantial inflow quantities. Naturally, the Bitcoin Trust was responsible for the majority of those funds.

These record inflows from institutional investors drove Grayscale to accumulate massive quantities of BTC. As such, the company’s holdings account for over 3% of all bitcoins ever to exist.

Grayscale’s recently-appointed CEO, Michael Sonnenshein, exemplified the significant demand from institutional clients for the Bitcoin Trust. He shared a filing with the SEC, claiming that such investors have allocated almost $1.3 billion in GBTC in the span of just one week.

This is a record for the Trust, as the average amount raised on a weekly base stood at $217 million through the company’s best quarter – Q4 2020.

Interestingly, though, the premium on the Bitcoin Trust has fallen beneath 3% for the first time in over a year, shows data from Ycharts. This is a substantial decline from a month ago when the premium was over 40%.

Grayscale Premiums Chart. Source: YCharts
Grayscale Premiums Chart. Source: YCharts

This could suggest that some accredited investors have cashed out GBTC positions. As GBTC is an SEC reporting product, investors have their holdings locked up for six months. After this period expires, they have the right to dispose of their positions, which could affect the premiums.

Grayscale Looks Into New Assets

Apart from the Bitcoin Trust, the asset manager provides products for several other cryptocurrencies. These include Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, and more. Recently, the company decided to dissolve the XRP Trust following the SEC charges against Ripple.

However, the firm could be adding more products for its institutional customers soon. The Delaware Trust Company, listed as Grayscale’s “statutory trustee” for Delaware, has filed documents with the state’s corporations registry to establish trusts for five digital assets.

Namely, those are Chainlink, Tezos, Decentraland, Livepeer, and Basic Attention Token.

However, the documents haven’t disclosed when any of these cryptocurrencies will have their own Grayscale Trust.


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