BitOffer Institute: All in? - the Grayscale Buying Momentum

[Cici Lee]

Source From BitOffer

Last week, Grayscale began a nationwide campaign to get more people to focus on investing in digital currencies like Bitcoin and Ethereum. In a 30-second AD on CNBC, MSNBC, FOX, and others, Grayscale's video shows how currencies have evolved over thousands of years, from shells and metals to legal tender, and tells viewers that this is the age of digital currency.

There have been many blockchain technology relatively ads, but most of then didn't directly target to Bitcoin. According to official figures, Grayscale raised a record of over $200 million in the first week of advertising.

As one of the world's leading digital currency asset managers, Grayscale manages the money of both individual and institutional investors that participate through off-market funding. Grayscale assets under management totaled $5.9 billion as of Aug. 14, according to data released by the media. Three days later, on August 17th, that figure had risen to $6.1 billion.

The Grayscale buying momentum can be seen more clearly from the following picture:


The bulk of the buying began around march of today. We can see that Grayscale continues to buy as bitcoin continues to rise over the last month.

The change is more clearly documented in filings by Grayscale with the U.S. Securities and Exchange Commission. In the second quarter of 2020, Grayscale issued more than 87 million shares, up from 133 million for the full year. The number of shares issued by the trust increased by almost 90 percent in the second quarter of 2020 compared with the first quarter. That's a more than sixfold increase from just 23 million shares issued in the first half of 2019. In the second quarter of 2020, Grayscale increased its net worth by $1.6 billion to a total of $3.5 billion. About half of that growth came from the appreciation of bitcoins held by trust companies.

"It's not Grayscale. It's the individuals and institutions that trust the company to invest in cryptocurrencies through his trust products. Grayscale is the one that has the most incentive to promote cryptocurrencies. If it was just the demand for arbitrage, the position of Grayscale Bitcoin Cash Trust would not increase so fast." says one of the cryptocurrency investors from the community.

Meanwhile, the trend continues for other currencies.

On August 17, Grayscale announced that its Bitcoin Cash Trust and Litecoin Trust had obtained DTC (Direct To Consumer) status and would be able to sell directly to consumers. Similar to GBTC, the Grayscale Bitcoin Cash Trust fund will be traded in the OTC market with the code BCHG, and the grayscale Litecoin Trust Fund will be traded in the OTC market with the token LTCN.

At the same time, more institutions dedicated to bitcoin funds have seen the opportunity at this newspaper advertisement in August:



The AD came from the Galaxy Bitcoin Funds, which is a microcosm of many other institutions. Such " Little Grayscales" are providing institutional investors with compliant and relatively secure channels to buy digital currencies, bringing more money into bitcoin and other digital currencies.

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5. automatically earning passive income

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