Grayscale Bitcoin Trust rises to become the biggest holder of BTC

Top cryptocurrency manager Grayscale will roll out five more digital currency trusts as part of an investment push specifically in five different crypto assets.

Grayscale Investments LLC, the company behind the biggest Bitcoin fund in the world, will offer investors exposure to five digital assets: Chainlink ($LINK), Basic Attention Token ($BAT), Filecoin ($FIL), Decentraland ($MANA), and Livepeer ($LPT).

The trusts are the crypto titan’s first offering since early 2019, and come following a stringent process of evaluating potential investor demand and the integrity of the underlying protocols, Grayscale CEO Michael Sonnenshein said.

Steadily buying BTC

The price of the tokens named in Grayscale’s latest trust offerings advanced following the news, particularly $LPT, which soared more than 265% in the past 24-hours.

The Livepeer token ($LPT) price was more heavily impacted compared to the rest because of its relatively smaller market value and community support.

According to Bank of America, the trust — which trades like a stock on the over-the-counter (OTC) market — is estimated to hold 700,000 BTC units, representing around 3.5% of the total supply valued at over $31 billion.

“The trust has been steadily acquiring BTC over 2020, especially in the fourth quarter of the year, and has become one of the five biggest holders of the cryptocurrency,” Markets Insider quoted BofA as saying.

ARK Next Gen — Biggest holder of Grayscale Bitcoin Trust

Based on reports, the biggest holder of Grayscale Bitcoin Trust is the ARK Next Generation Internet ETF, which owns more than 8,531,330 shares worth more than $368 million.

With Bitcoin’s price registering new record highs, a growing number of investors may be hesitant to invest. Other coins Grayscale picked have lesser market values, and some investors may view them as a more attractive entry point at the moment.

The Grayscale Bitcoin Trust came into existence in 2013 and is the top choice of investors who want to add BTC exposure to their portfolio without directly purchasing the digital token.

 

Image courtesy of Karolina Grabowska/Pexels

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