Blockchain analytics firm Arkham Intelligence has revealed that on-chain wallets linked to the Grayscale Bitcoin Trust (GBTC) hold more than $16 billion in Bitcoin.
Grayscale Investments, the issuer of the trust, stands as the second-largest global Bitcoin holder, with assets distributed across more than 1,750 unique addresses.
Arkham Intelligence highlights that Grayscale has opted not to disclose the on-chain addresses of GBTC due to security concerns, although the digital currency asset management company publicly reports its balances.
Arkham's findings also align with the information provided on Grayscale's official website.
The analytics firm reports that each wallet holds no more than 1,000 BTC, amounting to a total of £16.15 billion.
Grayscale Employs Coinbase Custody
In November 2022, Grayscale disclosed that all the digital assets underlying its products are held in custody by leading American crypto exchange Coinbase, which frequently validates the on-chain addresses.
Nevertheless, exposing these on-chain wallets and verification information to the public through cryptographic proof-of-reserve methods could pose security risks from malicious actors.
Coinlive previously reported on how Grayscale recently emerged victorious in a legal dispute with the United States Securities and Exchange Commission (SEC).
Grayscale's Regulatory Tussles
Grayscale had sued the SEC in 2022 after the regulator rejected its application to transform the trust into a spot exchange-traded fund (ETF). The SEC contended that Grayscale failed to substantiate its ability to prevent market manipulation in the application.
In addition to the $16 billion worth of Bitcoin, Grayscale also possesses over 3 million Ether (ETH) valued at approximately $4.95 billion, 301,000 Chainlink (LINK) tokens worth £1.89 million, and $1.78 million worth of Polygon (MATIC) tokens.
In total, Grayscale's addresses hold more than $21 billion in digital assets.