Cryptocurrency Lender BlockFi Now Has Over 5% Stake in Grayscale’s Bitcoin Trust
The New York City-based cryptocurrency lending startup BlockFi has become a stakeholder of Grayscale Investments, a leading cryptocurrency investing and digital assets management firm. Reportedly, BlockFi has bought a significant stake in the firm’s largest trust fund Grayscale Bitcoin Trust (GBTC). Now, the lending firm has more than five percent stake in Grayscale’s Bitcoin Trust.
BlockFi’s ownership in GBTC was revealed in a recent filing of the United States Securities and Exchange Commission (SEC). The SEC filing which was issued on Tuesday, October 27, 2020, reported that the lending company purchased a share of 24,235,578 in BTC from Grayscale’s Bitcoin (BTC) Trust. This represents ownership of approximately 5.07 percent in Grayscale Bitcoin Trust. At the time of writing, this amount of BTC is worth around $332,456,388,330.60.
The Chief Executive Officer (CEO) of BlockFi Zac Prince called this move of the company to purchase a share in GBTC “significant” saying that this will help them in adding value for their clients as well as “the marketplace for liquid and illiquid GBTC shares”.
The United States Securities and Exchange Commission requires each and every company or entity that has a threshold of more than 5 percent to unveil their stake positions publically. BlockFi has disclosed its ownership in GBTC through an SEC filing. Grayscale Bitcoin Trust is already a reporting company of the US SEC since the month of January.
Apart from BlockFi, the cryptocurrency hedge fund firm Three Arrows Capital also bought a stake in Grayscale’s Bitcoin Trust. However, the hedge fund company has more ownership of the Trust than that of BlockFi. Back in June, Three Arrows Capital purchased a total of 21 million shares from Bitcoin Trust. This shows that the crypto fund manager has a stake of around 6.26 percent in GBTC. The value of shares is approximately $260 million.
Grayscale Bitcoin Trust was launched in the year 2013 and so far now, there are more than 467,000 BTC held in this trust fund. GBTC is a great way for traders to have exposure to the top-ranked digital currency Bitcoin. With GBTC, they do not need to buy or store digital currency for gaining exposure to Bitcoin.
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