According to recent reports, Grayscale Investments has added 174,000 Litecoin (LTC) to its holdings over the past month, bringing its total Litecoin position to 1.44 million. This acquisition represents approximately 80% of all LTC mined during the same period, and at current prices, Grayscale's LTC holdings are valued at just over $248 million.
Massive Buy Fails to Rally Price
Despite such a large volume of accumulation, the price of Litecoin has remained largely unresponsive. Data from Messari shows that LTC briefly traded above the $200 mark between February 12 and 22, but has since retreated to levels below $200, with February 25 being the only exception. At the time of writing, LTC is trading at around $190, showing little reaction to Grayscale's aggressive purchasing.
On Twitter, several users have questioned why the price has not pumped following Grayscale's buying spree. User Carolyn Bamberger directly asked why the price has stayed flat. In response, the Litecoin team explained: "Large orders like these are usually purchased through an OTC desk as to not immediately impact the market. Some speculate that due to this the supply shock may be delayed." While some supporters remain unconvinced, others believe a price spike is imminent.
Grayscale Also Adds ETH and BTC
In the same period, Grayscale added over 243,000 Ethereum (ETH) to its holdings, bringing its total ETH position to 3.17 million, valued at approximately $4.86 billion. In contrast, only 7,169 Bitcoin (BTC) were added to Grayscale's largest fund, now holding over 655,640 BTC.
The magnitude of LTC accumulation relative to its mining supply is striking. Some analysts suggest that while OTC purchases cushion immediate price impact, the eventual supply squeeze could drive prices higher once institutional demand flows through to the open market. However, for now, the market remains indifferent.