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In a Twitter thread dated September 6, Arkham Intelligence, a renowned on-chain analytics platform, has asserted that Grayscale stands as the second-largest holder of BTC globally, managing a portfolio associated with over 1,750 wallet addresses linked to the Grayscale Bitcoin Trust (GBTC).

While each of these wallets individually contains less than 1,000 BTC (equivalent to $25.7 million), their cumulative holdings amass to approximately $16.1 billion, as highlighted by Arkham in their social media post.

This revelation closely aligns with the quantity stated on Grayscale’s official website, indicating that the company possesses a substantial Bitcoin reserve capable of satisfying withdrawal requests.

The precise location of Grayscale’s extensive BTC holdings has long been a topic of speculation within the Bitcoin community. Despite numerous requests, Grayscale has chosen not to disclose its wallet addresses, citing “security concerns.”

Grayscale stated in its recent Twitter thread, “Coinbase frequently performs on-chain validation. Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure.”

This lack of transparency has led some members of the crypto community to express skepticism, suggesting that Grayscale may hold fewer BTC than it claims.

It’s worth noting that while Arkham does not provide a comprehensive list of GBTC addresses, it does distinctly identify each Grayscale address within the transaction history of individual wallets.

Additionally, Grayscale’s holdings extend beyond BTC. The Grayscale Bitcoin Trust also encompasses 3.03 million ETH valued at $4.9 billion. Furthermore, Grayscale maintains holdings in other altcoins, including $1.86 million in Chainlink (LINK) and 1.74 million in Polygon (MATIC).

Based on current cryptocurrency market rates, Grayscale’s total assets exceed $20.9 billion, with BTC and ETH constituting the majority of its holdings.

It’s worth noting that Grayscale is currently embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC) as it seeks to convert the trust into an exchange-traded fund (ETF).

In a letter addressed to the SEC on Tuesday, Grayscale’s legal team argued that a court of appeals ruling had clarified that “there is no available rationale that would distinguish a bitcoin futures ETP from a spot bitcoin ETP,” countering the SEC’s previous stance.

Meanwhile, the SEC has postponed its decision on six other spot Bitcoin ETF applications until October, with applicants including BlackRock, Fidelity WisdomTree, Bitwise, VanEck, Invesco Galaxy, and Valkyrie.

Arkham Intelligence, a blockchain analytics firm based in New York, aims to address controversy surrounding its disclosure of private blockchain information. The company introduced the Intel Exchange on June 10, a platform that allows Web3 investigators and researchers to monetize their expertise.

While Arkham has faced criticism for what some users have termed a “snitch-to-earn” platform due to its disclosure of private information about blockchain users, the platform’s CEO argues that their intention is to level the playing field between large institutions and smaller players who might not have access to such data.

In late August, Arkham Intelligence also unveiled that a wallet linked to Robinhood held over $2.5 billion worth of Ethereum (ETH). According to Arkham, Robinhood’s wallet ranked as the fifth-largest ETH wallet, containing 1.5 million ETH valued at $2.54 billion. Previously, Arkham had identified Robinhood as the owner of the third-largest Bitcoin (BTC) address, holding 118,300 BTC ($3 billion).