A well-hidden crypto treasure by Grayscale. As Sherlock Holmes of the blockchain, Akham Intelligence has placed its magnifying glass on the giant’s wallets Grayscale. By tracing these digital transactions, they would have managed to identify the cryptos held by the entity, currently launched in a race for the Bitcoin ETF. And the amounts of assets owned are astronomical.
Grayscale: the BTC whale exposed by Arkham Intelligence
Arkham Intelligence is a company which has given itself to objective of “deanonymizing” the blockchain. This would use artificial intelligence to find the identity hidden behind users’ anonymous wallets. Being a controversial subject, these practices have today given us new entity information Grayscale and the depth of its ramifications within the crypto ecosystem.
Indeed, Arkham analysts have just revealed 1,750 addresses of digital wallets potentially connected to Grayscale’s Bitcoin Trust. In total, these wallets would hold $16.1 billion of BTCwhich would tend to definitively show that Grayscale is a huge whale of Bitcointhe second in proportion to be exact.
This would make almost ridiculous another well-known whale: MicroStrategy and its whimsical boss, Michael Saylor. The latter would hold, for his part, at the last count, 152,800 BTCis around $3.9 billion at the current price.
Arkham Intelligence specifies that all Grayscale wallets separately contain less than 1,000 BTC each. This remains an honest sum, let us say, but cumulatively they bring together over 600,000 BTC.
On the other hand, Grayscale would also be at the head of 3.03 million ETHor approximately $4.9 billion. A nice sum too.
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Discounted Grayscale GBTC: for how long?
Grayscale’s fund allows institutions to be exposed to the Bitcoin price via its GBTC trust, without the counterpart of having to keep and secure them. Moreover, this exposure is carried out through traditional routes that investors are accustomed to. Grayscale is currently battling the SEC (Securities Exchange Commission) to see its famous trust converted into an ETF (exchange-traded fund).
Moreover, exposure to GBTC is all the more interesting today for professionals, as GBTC is discounted compared to the true price of Bitcoin. Why is that ? Simply lack of demand.
However, in the event that the SEC would indeed authorize the transformation of the Grayscale trust into an ETF, the price of its GBTC would be reindexed to that of Bitcoin, mechanically. Some investment funds made no mistake, like that of Cathie Wood. They opted for this strategy which, however, remains a risky bet. Ark Invest announced that he had bought GBTC last November, when it was at its lowest, hoping it will be converted into an ETF. The shares thus acquired at a discount of around 40% can thus be resold at the cost price of 1 BTC, in the event of success.
A risky, but profitable bet, which attracts investors, since GBTC discount appears to be fading for the past few months. Moreover, it is the american regulator who now finds himself under pressure. Investment funds of all stripes are impatient to see their ETF accepted. Grayscale is not to be outdone, and has regained its splendor after his recent victory in a lawsuit that pitted him against the SEC.
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