Grayscale and Other Hedge Funds Hold 4.3% of the Circulating Bitcoin Supply in AUM: Arcane Research

We recently saw how the accumulation of Bitcoin by institutions drove the price of Bitcoin and other cryptocurrencies higher. Grayscale is one of the major companies that has dominated the Bitcoin investment space. A research analyst with Arcane has revealed that the Bitcoin investment company has amassed close to 100,000 BTC since December 31.

Vetle Lunde revealed that GBTC and other Bitcoin ETFs hold a total of 800,000 BTC in Asset Under Management (AUM). This equates to about 4.3% of the current supply of Bitcoin in circulation and is worth over $46.2 billion.

However, of these investment funds, Grayscale is currently the largest Bitcoin holder with over $41 billion in AUM. In a very short time, the firm has purchased about 100,000 BTC. The company revealed last year that it could later own 10% of all BTC supply by 2024.

When Grayscale started aggressively accumulating Bitcoin, some economists were worried that it could later affect the market. This year, we have witnessed other firm like Tesla, Square, Meitu buy Bitcoin. The moves greatly impacted the crypto market as the series of investments drove BTC to about $60,000 before it dropped.

Grayscale Retains Dominance of Bitcoin Investment Market

According to a CrossTower analyst, Bitcoin ETFs will replace GBTC as the major driver of the crypto market. The report revealed that the newly launched Canada Bitcoin ETFs are likely going to replace Grayscale Trust very soon. Since their launch, the three Canadian ETFs have managed to claim about 2.5% share of the Bitcoin investment market.

Vetle also revealed that the Grayscale investment headed by Barry Silbert remains the most dominant in the Bitcoin investment fund market. There are reports that Grayscale may later introduce an ETF if the SEC later approves Bitcoin ETF.

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