Onchain Analysis Confirms Number of BTC Held by Grayscale’s Bitcoin Trust – Bitcoin News


After Grayscale Investments shared information about the company’s product holdings, people questioned why the firm did not share the public addresses associated with the crypto assets it owns. However, on November 23rd, OXT researcher Ergo posted a Twitter thread showing onchain forensics confirming the balance of 633K bitcoins belonging to Coinbase Custody’s Grayscale Bitcoin Trust (GBTC).

OXT Researcher Validates Grayscale’s Bitcoin Holdings

Five days ago, Bitcoin.com News reported on Grayscale, which disclosed information related to the safety and security of the company’s digital assets. Grayscale’s statements were intended to reassure the public that the company’s cryptocurrencies are “safe and secure” following the collapse of FTX.

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

One thing Grayscale didn’t disclose were the addresses of the company’s digital assets, and it noted why it chose not to share its wallets. Grayscale explained that it has never made its onchain addresses public “for security reasons”. The claim was criticized and he scoffedbut Grayscale said he understood the disclosure would be “a disappointment to some”.

Although Grayscale did not disclose, OXT researcher (oxt.me) Thus GBTC explained that it has launched a community-led effort to create transparency around its holdings. “We have taken steps to identify likely GBTC addresses and balances based on public information and blockchain forensics,” he said. he said on November 20.

Onchain Analysis verifies the number of BTC held by Grayscale's Bitcoin Trust
Ergo said the team of researchers “scanned the blockchain,” used heuristics and combined publicly known bitcoin addresses.

Using an article from Coindesk, heuristics, and publicly known bitcoin addresses linked to custodian Xapo, Ergo “identified 432 addresses holding 317,705 BTC to probable GBTC storage activity.”

The researcher discovered at least 50% of GBTC holdings and he added: “additional work is needed to identify the remaining addresses.” On November 23 at 2:49 PM (ET), Ergo announced that further work had been completed on Twitter in a thread titled “The Grayscale G(BTC) Coins Part 2”. he tweeted:

In this analysis, we use addn [onchain] forensics to CONFIRM approximately 633K BTC balance held by G(BTC) in Coinbase Custody.

Ergo’s summary notes that after discovering the first 50% of bitcoins associated with Grayscale’s BTC, the team had to “scan the blockchain” for additional addresses matching the profile of those found in Part 1.

Onchain Analysis verifies the number of BTC held by Grayscale's Bitcoin Trust

Therefore, independent analysts release information about it heuristic methods are used and bitcoin addresses designed for search. “Obviously, no heuristic or set of heuristics is perfect, and this analysis certainly contains false positives and negatives.” noted. “However, our result is almost identical to G(BTC)’s reported holdings.”

On Twitter, Ergo says he doesn’t know why Grayscale decided not to share the company’s BTC addresses. Ergo said the team initially thought Coinbase Custody might have a non-disclosure policy. But after reading some information published by Coinbase, Ergo he said “It seems clear that Coinbase Custody is willing to release addresses.”

A number of people complimented Ergo’s Twitter thread and analysis of GBTC coins. Additionally, the news follows Coinbase CEO Brian Armstrong explaining that Coinbase held 2 million bitcoins as of September 30.

Tags in this story

633K bitcoin, 633K BTC, addresses, Bitcoin (BTC), BTC, BTC addresses, BTC Cache, BTC Stash, BTC wallets, custodian, Digital Assets, Ergo, Ergo BTC, false positives and negatives, fund manager, GBTC, GBTC holdings , grayscale , Grayscale Investments , heuristics , Onchain analysis , Onchain Research , OXT , OXT researcher , oxt.me , oxt.me data , public bitcoin addresses , Xapo

What do you think of Ergo’s onchain analysis of GBTC’s bitcoin army? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News at Bitcoin.com News and a fintech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about 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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