Which institutions have cleared GBTC in Grayscale?

As the weathervane of the encryption market, the change of grayscale positions has become a daily must-see data in the currency circle. The increase in positions is regarded as a bullish signal, which is interpreted by the market as the continuous entry of institutions.

Due to rules such as non-redeemability and lock-up, a kind of "the institutions behind Grayscale only The illusion of "buying or not selling". But institutions do not always hold positions.

For example, the first ETF that bought GBTC sold GBTC twice in the near future, and both happened on the next day Thousands of dollars down the line.

So, which institutions have sold their GBTC holdings?

Who is selling GBTC

According to the rules of US stocks, institutional investors will announce their holdings every quarter (issue 13F reports), of course, they can also apply to conceal part of their holdings to prevent plagiarism. Since the current latest data is only updated to the third quarter, Rhythm is still unable to learn the latest GBTC trading situation of institutions. After the fourth quarter data is updated, Rhythm will also bring you first-hand news in time.

Addison Capital is a privately owned and managed fee-based Registered Investment Advisor (RIA) firm managing $227 million. It bought GBTC in the second quarter of 2020 and sold it in liquidation in the third quarter.

tru Independence is an open architecture The platform provides financial advisors with a complete set of business services required for independent operations. tru Independence also bought GBTC in the second quarter of 2020 and sold it in liquidation in the third quarter.

FNY Investment Adviser is a hedge fund established in New York in 1986 and currently manages about $2.94 billion in assets. It started buying GBTC in the fourth quarter of 2018, and sold 24,300 GBTC in the third quarter of 2020, and currently holds 10,700 GBTC, worth about $230,000.

Formidable Asset Management is a registered investment advisory firm established in 2013, providing wealth management, insurance, financial planning , an alternative investment management and business advisory, currently manages approximately $468 million in assets. It bought GBTC in the first and second quarters of 2020, and sold it in liquidation in the third quarter.

IFP Advisors provides services including investment advice, portfolios, wealth management, financial planning and counseling, and pension and retirement planning Financial services, including consulting, currently manages approximately US$5.22 billion in assets. IFP Advisors bought GBTC as early as the first quarter of 2016, and sold 9.81% of GBTC held in the third quarter of 2020, and currently holds 133,800 GBTC, worth about $2.95 million.

Incorporated in 2018, Filbrandt Wealth Management is a 17-state IRA with $973 million currently under management. It bought GBTC in the first and second quarters of 2020, and sold them in liquidation in the third quarter.

Edge Wealth Management is a wealth management firm providing investment advice, insurance, risk And investment portfolio management and financial planning services, the current asset management scale is about 934 million US dollars. It first bought GBTC in the first quarter of 2019, bought and sold many times in the middle, and cleared the position in the third quarter of 2020.

In addition to the above-mentioned institutions, there is also a relatively special fund that has recently reduced its holdings of GBTC. The fund is the "Next Generation Internet ETF" ARKW (ARK Next Generation Internet ETF) under ARK Investment Management (Ark Investment).

The relationship between ARK and GBTC can be traced back to September 2015. ARKW under ARK was the first to purchase GBTC ETFs. ARKW purchased GBTC directly through the OTC market in September 2015, which means that the GBTC held by ARKW does not need to be locked for half a year and can be bought and sold at will.

Unlike other funds, ARK will announce the changes in its positions every day, so we can spy on the changes in its GBTC positions .

According to the data released by ARKW, it sold 141,000 GBTC on November 25, and on November 30 575,000 GBTC were sold daily, totaling 716,000 GBTC. Coincidentally, on the day after ARKW sold GBTC, the price of BTC fell. On November 26, the price of BTC fell by 8.39%, and on December 1, the price of Bitcoin fell by 4.73%.

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Of course, it is difficult for us to attribute the collapse of Bitcoin to ARKW’s sale of GBTC, but ARK’s position changes must also Be followed. (About ARK, you can read "The Queen’s Investment Chess Game: Holding Tesla Heavy, Betting Pay attention to Bitcoin, known as the female version of Buffett")

Current holdings

As of December 11, Grayscale Bitcoin Trust has issued a total of 581,902,300 GBTCs, each containing 0.00095122 BTCs.

Designed according to the rules of Grayscale, it can be seen that the current circulation share of GBTC in OTC is about 383,917,495 (Rhythm note: In the past 6 months, the newly held BTC is about 188,327 pieces, so the nominal BTC circulation is: 553,517-188,327=365,190; the GBTC circulation share is: 365,190/0.00095122=383,917,495; this calculation process does not take into account the 2% annual management fee charged by Grayscale ).

From the changes in the number of BTC held by Grayscale Bitcoin Trust in the fourth quarter, it is not difficult to see that a large number of Funds are flowing in, and there are many new institutions entering the market. On November 30, Deribit Insights tweeted that the Guggenheim Macro Opportunities Fund had applied to the SEC to invest $500 million in the Grayscale Bitcoin Trust.

Greyscale Bitcoin Trust’s increase in BTC in the fourth quarter Source: AICoin

Based on Nasdaq and Fintel data, Rhythm BlockBeats has counted the institutions currently holding GBTC according to the latest disclosure time.

At present, a total of 36 institutions hold GBTC, holding a total of 59,728,728 GBTC, accounting for 10.26% of the total circulation.

BlockFi, which holds the most GBTC, is an encrypted asset lending platform, and the current market value of its GBTC is about 500 million Dollar. In February of this year, BlockFi completed a $30 million Series B round of financing. In April, Three Arrows Capital, the hedge management fund holding the second largest GBTC share, acquired part of its shares from other BlockFi investors. In July, BlockFi sought a $50 million Series C round at a $400 million valuation. BlockFi CEO Zac Prince said that the company will go public as early as the second half of 2021.

It is worth noting that BlockFi and Three Arrows Capital are institutional users holding more than 5% of the shares. When reducing holdings, documents need to be submitted for explanation.

The fourth largest institution holding GBTC is ARK, and the third largest institution is ARKW.

The five trust funds under the hedge fund Horizon Kinetics (the fifth, sixth, seventh, eighth in the table , Tenth) and a closed-end fund (RENN Fund, twenty-three in the table) all hold GBTC, holding a total of 5.18 million GBTC, worth about 107 million US dollars. In addition to buying GBTC, Horizon Kinetics also participates in Bitcoin mining, hosting the mining machines at the Core Scientific mine farm, which has a  450 MW electric load mine farm.

If you want to have a deeper understanding of institutions holding GBTC, you can click to read "Analysis of the gold master behind Grayscale" (Rhythm Note: Due to different data sources, this article invests in GBTC slightly fewer institutions than in this article).

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