Onchain Analysis Verifies the Number of BTC Held by Grayscale’s Bitcoin Trust

Onchain Analysis Checks How Many BTC Are Holds by Grayscale’s Bitcoin Trust – Bitcoin News

After Grayscale Investments shared information regarding the company’s holdings of products, people wondered why the company didn’t share public addresses associated with the crypto assets it owned. However, on November 23, OXT researcher Ergo posted a Twitter thread showing onchain forensics confirming that Coinbase Custody has a balance of 633,000 bitcoins that likely belong to Grayscale Bitcoin Trust (GBTC).

An OXT researcher verifies Grayscale’s bitcoin holdings

Five days ago, Bitcoin.com News mentioned on shades of gray that reveal information related to the integrity and security of a company’s digital assets. Grayscale’s statements were meant to reassure the public that the company’s cryptocurrencies are “safe and secure” after the FTX crash.

The digital asset fund manager explained that all of the company’s digital assets are held by the Coinbase Custody Trust Company. On the Grayscale website, the company says that Coinbase Custody is a qualified custodian under New York banking laws and funds are held in “cold storage.”

The only thing Grayscale did not disclose were the addresses of the company’s digital assets and it has stated why it chose not to share wallets. Grayscale has clarified that it has not publicly disclosed onchain addresses to the general public “due to security concerns”. The claim and mock thembut Grayscale said he understood the lack of disclosure would be a “disappointment to some”.

Although Grayscale was not detected, an OXT researcher (oxt.me) Subsequently He explained that he had started a community-led effort to create transparency around GBTC holdings. “We have taken steps to identify potential GBTC addresses and balances based on public information and blockchain forensics,” Ergo said He said On November 20th.

Onchain analysis checks how many BTC is held by Grayscale's Bitcoin Trust
Ergo said the team of researchers “scanned the blockchain” and, using heuristics, linked publicly known Bitcoin addresses.

Utilizing an article from Coindesk, inferring publicly known bitcoin addresses associated with custodian Xapo, that day Ergo traced back 432 addresses containing 317,705. BTC Most likely GBTC incubation activity. “

The researcher discovered at least 50% of GBTC’s holdings and added: “Additional work is necessary to identify the remaining addresses.” By 2:49 PM (ET) on November 23, Ergo said that additional work had been completed in a Twitter thread titled: “The Grayscale G (BTC) Coins Part 2 “Ergo chirp:

In this analysis, we use more [onchain] Forensics to confirm the approximate figure of 633K BTC The equilibrium maintained by G (BTC) at Coinbase Custody.

Ergo’s summary notes that after the discovery of the first 50% of bitcoins associated with Grayscale BTCthe team had to “scan the blockchain” for additional addresses that fit the profile of those in the first part.

Onchain analysis checks how many BTC is held by Grayscale's Bitcoin Trust

Ergo also leaves information on independent analysts inference used and the Bitcoin addresses collected for research. “It is clear that no combination of experimental evidence or methods is perfect, and this analysis certainly includes false positives and negatives.” notice. But our result is almost identical to G (BTC) self-reported holdings.”

In a Twitter thread, Ergo says it doesn’t know why Grayscale decided not to get involved with the company BTC addresses. Ergo said the team originally thought Coinbase Custody might have a non-disclosure policy. But after reading some information that Coinbase posted, Ergo He said “It seems clear that Coinbase Custody is willing to disclose the addresses.”

a number of people. from the public Compliment Ergo Twitter Indicator and GBTC Coin Analysis. Furthermore, the news follows Coinbase CEO Brian Armstrong stating that as of September 30th, Coinbase holds 2 million bitcoins.

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What do you think about Ergo’s onchain analysis of GBTC’s bitcoin crowd? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the Chief News Officer at Bitcoin.com News and a financial and technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons, Ergo BTC, Grayscale logo,

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