BTC continues to be accumulated by Grayscale, a leading fund manager for digital assets, among others.
The company’s leading Bitcoin trust was found to put 12,319 BTC in its coffers in a single day.
Bitcoin continues to accumulate
Bitcoin continues to be accumulated by Grayscale, a leading fund manager for digital assets.
Kevin Rooke, a technology analyst, comments that “Grayscales Bitcoin Trust just added 12,319 BTC to $ GBTC in a single day. That’s more than the 11,512 BTC they added during all of last week when Bitcoin broke its ATH. ”
This shows clear institutional demand for Bitcoin despite the recent consolidation
While the Grayscale Trusts are seeing massive inflows, those inflows could slow down for now. The company has been widely reported to have temporarily halted new investments in six of its trusts.
This is only temporary and is likely related firstly to the holiday season and secondly to a large release of private shares in the trusts that can now be sold in the secondary market.
Some think this could mean that there will be limited inflows into Bitcoin Trader and Ethereum over the next few weeks , but this only seems like a temporary setback for the market. In addition, other institutional players accumulate the leading cryptocurrencies through other vehicles.
Others see it that way too
The latest confirmation of a major Grayscale purchase comes after MicroStrategy, the American business services company, confirmed a major Bitcoin purchase.
The company now holds “a total of approximately 70,470 Bitcoins, which were purchased for a total purchase price of approximately $ 1.125 billion and an average purchase price of approximately $ 15,964 per Bitcoin, including fees and costs.”
MicroStrategy sees the leading cryptocurrency as a better investment than cash. Commenting on the latest investment, Michael Saylor from Microstrategy said:
“The acquisition of additional bitcoins announced today reinforces our belief that bitcoin, as the world’s most widely used cryptocurrency, is a reliable store of value. We believe that the proactive management of our balance sheet combined with the company’s improved sales and profitability performance has been a major contributor to the recent surge in our share price. “
Those companies and funds that invest in Bitcoin for the long term are likely to limit the amount of BTC in the market, driving prices up over time – assuming demand for the cryptocurrency increases.