Could Grayscale’s Second-Largest BTC Ownership Worldwide Be Bad for Bitcoin?

• Arkham Intelligence’s latest report revealed that Grayscale has the second most Bitcoins worldwide. According to Arkham, Grayscale’s Bitcoin holdings exceeded 627,000 BTC.
• A major milestone for the Trust was when they became an SEC reporting company on January 21, 2020. This happened after he registered his shares with the Commission.
• While the amount of Bitcoin held by different organizations can vary, data from Santiment’s chart shows that there is a steady increase in the number of Bitcoin holders.

Grayscale’s GBTC fund is the second largest holder of BTC in the world: Could this be a bad thing for Bitcoin? Should we be worried about centralization?

Grayscale Bitcoin Trust is the Second Largest BTC Holder

Recent research reveals that Grayscale holds a significant amount of Bitcoin. What is the extent of their holdings, and could this amount raise concerns about centralization in BTC?

A recent report by Arkham Intelligence indicates that Grayscale holds a substantial amount of Bitcoin, making them the second-largest BTC holder globally. According to Arkham, Grayscale’s Bitcoin assets have surpassed 627,000 BTC, with a total value exceeding $16 billion. Furthermore, these Bitcoins are distributed across more than 1,750 addresses, with no single address holding more than 1,000 BTC.

Grayscale is known as a digital asset management company that allows individual investors to trade through broker accounts. They are particularly recognized for offering the Grayscale Bitcoin Trust.

A significant milestone for the trust occurred when it became an SEC reporting company on January 21, 2020, after registering its shares with the Commission. This designation also marked it as the first digital currency investment vehicle under SEC oversight.

Could Bitcoin Be Vulnerable to Price Manipulation?

A potential concern arising from this recent revelation is whether Grayscale’s significant Bitcoin holdings could afford them the capacity to influence the price of BTC. At the time of writing, the circulating supply of BTC was over 19.4 million.

Additionally, the maximum supply limit is 21 million. Furthermore, the fully diluted market cap exceeded $540 billion, while the current market cap was over $500 billion. However, Grayscale’s assets may seem small in comparison to the overall market cap and circulating Bitcoin supply, but there is a possibility that their actions could impact the market.

Nevertheless, it’s essential to note that the market has demonstrated resilience against potential movements from such assets.

Number of Current BTC Holders

While the amount of Bitcoin held by different institutions may vary, data from Santiment’s graph suggests a continuous increase in the number of Bitcoin holders. According to the graph, the count of BTC holders has risen beyond 49.5 million, surpassing the 49 million recorded at the end of August.

Furthermore, at the time of writing, BTC was trading at approximately $25,680 levels, with a slight depreciation from previous levels.