Grayscale Investment now owns just under 3 per cent
Grayscale Investment now owns just under 3 per cent of all bitcoin
Institutional investors can’t seem to get enough of it and are buying more bitcoin (BTC) on Grayscale than miners can produce. Demand for the digital gold is far outstripping supply and last Monday alone Grayscale bought 16,244 BTC.
Grayscale, the world’s largest crypto hedge fund, now holds almost three per cent of all bitcoin in circulation. Furthermore, the Bitcoin Lifestyle investment firm has increased its crypto holdings by an average of 10 per cent in recent months.
Grayscale buys $607 million worth of bitcoin
Last Monday, 18 January 2021, New York-based venture capital firm Grayscale made the largest BTC purchase in its history to date. This means that the amount of Bitcoin purchased by Grayscale far exceeds the BTC generated daily by mining. Miners currently generate just under 900 Bitcoin a day. All miners together would therefore need 18 days to mine the amount of BTC bought by Grayscale. According to WhalePanda, a well-known Twitter user in crypto space, Grayscale has even acquired over 60,000 BTC in the last 30 days, for which miners would have to work for more than two months.
$GBTC Bitcoin holdings keeps growing at an insane rate
Yesterday 16k BTC was added which is the equivalent of 18 days of new coins being mined (900 per day).
Over the last 30 days it was 60k BTC which is more than 2 months of mining… and the trust was closed for 3 weeks. pic.twitter.com/NxL9OwnWMP
– WhalePanda (@WhalePanda) January 19, 2021
In addition, Grayscale now manages $27.1 billion worth of assets, and just under $23 billion of that is in bitcoin.
01/15/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $27.1 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/i2fg9yaHb0
– Grayscale (@Grayscale) January 15, 2021
The fact that the investment firm continues to buy BTC also speaks for a sustained high demand on the part of institutional investors. Therefore, Nikolaos Panigirtzoglou, investment strategist at JPMorgan, also believes that Bitcoin is heading for a new all-time high soon given the current demand. He also believes that a BTC price of 146,000 US dollars is possible in the long term.