Institutional

Grayscale Bitcoin Trust’s assets under management hits all-time high of $2.8B, but institutional demand softens

The Block

Quick Take

  • GBTC’s assets under management reached an all-time high of $2.8 billion
  • By the end of June, Grayscale held 225,316 bitcoins or just under 1.3% of Bitcoin’s total circulating supply
  • Bitcoin inflows, or the amount of bitcoin added to GBTC’s holdings, are reaching lows, which signals a falling institutional interest
  • The GBTC premium is currently about 30% and has started decreasing, which shows a shift in market sentiment

Grayscale Bitcoin Trust (GBTC), a closed-end fund that invests exclusively in bitcoin, serves as perhaps the best indicator of institutional investment in bitcoin.

In Q1 2019, institutional investors composed 73% of total demand for Grayscale products; trailed by retirement accounts (16%) and family offices (10%).

GBTC’s assets under management (AUM), in this case the value of all the bitcoins held in the fund, just reached an all-time high of $2.8 billion, surpassing a previous all-time high of $2.55 billion from December 2017.