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. The increasing AUM is the result of bitcoins already in the fund appreciating in value.
By the end of June, Grayscale held 225,316 bitcoins or just under 1.3% of Bitcoin’s total circulating supply.