According to a report released by Diar on Dec 3, Grayscale Bitcoin Investment Trust (GBTC) has started the month on a low. For the first time this year, the trust is holding BTC worth less than $1 billion. Its new record for the lone Bitcoin Investment trust in the U.S. albeit a negative one.
However, even though the firm’s investment in dollars has decreased, it has recorded an increase in the number of Bitcoin deposits. The trust which is the largest institutional investment firm is currently holding over 203,000 BTC. The figure translates to just over 1 percent of the circulating supply.
Interestingly, December has seen more deposits when compared to the past month according to the report.
However, despite an increase in the firm’s Bitcoin holdings, its other crypto-based financial products have yet to find stable interest from clients. According to the report, the other eight non-BTC assets under management account for only $56.4 million which is just 6 percent of the firm’s total holdings.
The report also notes that the percentage of the total holdings has decreased by 8 percent compared to when the trust launched its Zen Fund.
The Firm’s shares had also been spiralling down since Bitcoin’s record high last year. They have dropped a jaw-dropping 80 percent between December of 2017 and October 2018.
According to a report released by the firm in July of this year, 56 percent of the capital inflow was coming from institutional investors. It seems while the bear market has discouraged many retail investors and speculators, “counterintuitively,” the Company has seen the rate of investment increase to a level they haven’t seen before.
So, it’s safe to say that institutional investors are busy buying the dips while others scare away.
What’s your take on Grayscale Bitcoin investment falling under $1 billion for the first time this year? Share your thoughts in the comment section below.
