The crypto investment fund Grayscale buys a significant portion of all newly mined Bitcoin. Grayscale Investments belongs to the Digital Currency Group and manages various crypto assets as a fund. In a Reddit article, the user parakite calculated that Grayscale has bought up about one third of all newly mined Bitcoin in the last three months. The massive investment increase of the fund in the last quarter is shown here;
Average weekly investment (Q1 2019): $3.2 million
Average weekly investment (Q1 2020): $29.9 million
The founder behind Grayscale, Barry Silbert, is determined to add to the already impressive numbers. So he tweets “wait until the second quarter…” With this he suggests that the almost tenfold increase in the investment volume from Q1 2019 to Q1 2020 to 29.9 million US dollars is likely to increase significantly again in Q2 2020.
Institutional player with mega influence on Bitcoin price
At such volumes, Grayscale can be described as an institutional Bitcoin whale with significant influence on the Bitcoin market. Not only are many newly mined Bitcoin being bought up, but the current portfolio of $3.8 billion gives the Digital Currency Group a strong market position. As recently reported by Grayscale, the volume of BTCs under management has almost doubled in Q1 2019 compared to the previous year. At that time, the assets under management amounted to “only” 2.1 billion US dollars.