Grayscale holds 2.6% of available Bitcoin

[They]

In a few short years Grayscale has positioned itself as the largest custodial holder of Bitcoin - 2.6% of all available Bitcoin and growing daily. For the past many months they have been regularly purchasing more than what is being mined.

For all of the anti Central Bank hoopla out there Grayscale has become a defacto bank paying a negative 2% deposit fee for those unwilling or incapable of managing a wallet.

In the securities industry if an entity owns 5% of an company there is a 13(d) filing. Does not apply to crypto but that rule is there for a reason.The way things are going Grayscale will be approaching 5% of available Bitcoin before we know it.

Thoughts? @johnarb @Sprout @Trader Curt

Amazing and scary

 

[johnarb]

In a few short years Grayscale has positioned itself as the largest custodial holder of Bitcoin - 2.6% of all available Bitcoin and growing daily. For the past many months they have been regularly purchasing more than what is being mined.

For all of the anti Central Bank hoopla out there Grayscale has become a defacto bank paying a negative 2% deposit fee for those unwilling or incapable of managing a wallet.

In the securities industry if an entity owns 5% of an company there is a 13(d) filing. Does not apply to crypto but that rule is there for a reason.The way things are going Grayscale will be approaching 5% of available Bitcoin before we know it.

Thoughts? @johnarb @Sprout @Trader Curt

Amazing and scary

Very exciting time right now with bitcoin and the timing is great with all of these demand as the halvening is causing a supply crunch, as the miners are not producing enough, and not all mined bitcoins are being sold by the miners, either.

Bitcoin went down today with Biden's Presidential win, and hopefully once things settle down, bitcoin will start to go back up again...

Here's a great thread on Twitter discussing the supply crunch with PayPal and Square and of course GBTC

https://twitter.com/x/status/1324665302584623104

 

[tsznecki]

In the securities industry if an entity owns 5% of an company there is a 13(d) filing. Does not apply to crypto but that rule is there for a reason.The way things are going Grayscale will be approaching 5% of available Bitcoin before we know it.

WTF cares. Bitcoin is not a company. Apples and airplanes.

 

[They]

WTF cares. Bitcoin is not a company. Apples and airplanes.

Yes, Bitcoin is not a company. But Grayscale is and certainly has influence in its custodial relationship. What if Grayscale's Bitcoin Trust held 60% or 70% of all available Bitcoin would you still think it doesn't matter?

 

[gkishot]

WTF cares. Bitcoin is not a company. Apples and airplanes.

Bitcoin is an internet database.

 

[Trader Curt]

What if Grayscale's Bitcoin Trust held 60% or 70% of all available Bitcoin would you still think it doesn't matter?

I don't see that happening. There are 21 million coins in circulation and the more people own the higher the price goes for the remaining coins. Let's say all coins were owned and there was only 1 Bitcoin left, that Bitcoin would probably be a trillion dollars to buy. So price is based on supply, it would take billions and billions of dollars to even own 5%

 

[Clubber Lang]

More proof that the Fed has completely destroyed real price discovery in the markets.
Bitcoin to 50k
FAANGM to 4 trillion market caps
ZIRP for the next decade

Wipe your ass with cash

 

[BKR88]

What if Grayscale's Bitcoin Trust held 60% or 70% of all available Bitcoin

Big difference between 2.6% and 60-70%.
Only about $180 billion at the current price

 

[They]

I don't see that happening. There are 21 million coins in circulation and the more people own the higher the price goes for the remaining coins. Let's say all coins were owned and there was only 1 Bitcoin left, that Bitcoin would probably be a trillion dollars to buy. So price is based on supply, it would take billions and billions of dollars to even own 5%

Well, at the rate Grayscale's AUM are increasing I don't think it will be long before they hold 5%
They also hold 2% of Ethereum and growing.

 

[tsznecki]

Yes, Bitcoin is not a company. But Grayscale is and certainly has influence in its custodial relationship. What if Grayscale's Bitcoin Trust held 60% or 70% of all available Bitcoin would you still think it doesn't matter?

No it would not matter.

I don't know how you go from 5% to 60-70%. Or why you are so focused on who controls the supply.