Grayscale could soon control 5% of Bitcoin’s circulating supply

Grayscale could control 5% of Bitcoin’s circulation supply (BTC) if it maintains the current growth rate.

Grayscale reported last week that its product known as Bitcoin Trust recorded the largest inflow of money at $215m. The crypto community sees the possibility that the company will soon control 5% of Bitcoin’s supply.

Grayscale takes over Bitcoin

On Monday a user on Twitter posted a rather interesting graph where we can see the inflow of each week into the Bitcoin Investment Trust (GBTC).

During the week of October 27th, the crypto company received an inflow of USD 214 million, or 15,907 Bitcoin; indicating a steady increase in the number of shares issued.

This raised the GBTC’s AUM to USD 6.55 billion.

As we see in the above Tweet, Grayscale currently has $7.7 billion in AUM of all the crypto products it offers. And, as mentioned above, the Bitcoin Trust leads with USD 6.55 million.


The issue under discussion is what this situation implies if we project it into the long term.

If Grayscale manages to maintain last month’s growth rate of 32,000 BTC, the firm could maintain 500,000 BTC (2.7% of current supply) within three weeks.

And, looking even further ahead, by the end of next year, if the rate is constant, Grayscale could control 926,600 BTC, which is 5% of Bitcoin’s current supply.

The interest the company has aroused, both in the crypto community and traditional investors, is evident. Mainly 2020 has been a year where Grayscale has experienced explosive growth.

In fact, the company recently presented its third quarter report and since then the Bitcoin Trust AUM has increased by an additional $2 billion.

The fact is that at least for the time being, there is reason to believe that Grayscale’s growth rate will be maintained or even increased in the coming months.

Bitcoin has been the main ally in this process as it has increased interest from institutional investors.

In this regard, last week Grayscale published a study where it found that US investors who were interested in investing in BTC had increased from 36% in 2019 to 55% in 2020.

As such, Grayscale’s role in the crypto market, especially Bitcoin, is very relevant. It is currently the largest listed company in Bitcoin.

And, if the growth rate is maintained or increased, Grayscale would be increasing its control over Bitcoin in a way that some might be concerned about.

What do you think the impact will be of Grayscale having approximately 5% of the circulating supply of Bitcoin?