Grayscale continues to accumulate BTC in the market to insure them in their Bitcoin Trust.
The rate at which they are being purchased is reaching surprising levels.
As revealed by Kevin Rooke On twitter, only in the last week, Grayscale has purchased and added 19,879 BTC to their Bitcoin Trust, almost three times the volume of bitcoin mined in the same period, 7,081 BTC.
Actually, since the early 2020s, Grayscale has been accumulating bitcoin on the market, but the ratio has become surprisingly large, especially after halving, when the creation of new bitcoin was halved.
In fact, as of May 11, 2020, they bought and added 53,588 BTC to their Bitcoin Trust, while in the same period the new bitcoin generated through mining was only 39,544 BTC.
In other words, it is as if they had bought and insured all the new BTC created after the halving, plus another 14,044.
To date, the Grayscale Bitcoin Trust owns almost 400,000 BTC or more than 3.5 billion US dollars.
Grayscale Bitcoin Trust is an SEC-approved financial product that allows investors to invest in bitcoin without having to buy or hold them.
In fact, Grayscale issues publicly traded securities, related to shares of the same fund that it has invested exclusively in BTC, in order to reflect its price.
This allows investors to buy SEC-approved security that has the same value as Bitcoin, while Grayscale is solely responsible for buying and holding BTC.
This means that if Grayscale is piling up bitcoin on the market to secure them in its fund, it is likely because the market demand for the fund's shares is likely to rise sharply.
Also, for many investors, especially institutional, the direct purchase of BTC and especially its custody generate several problems that they cannot or do not want to deal with. Therefore, the success of the Grayscale Bitcoin Trust is not surprising at a time when the BTC demand continues sustained after the price increase after the fall in mid-March.