Grayscale Bitcoin Trust pockets another 16,000 Bitcoins in a single day taking its net asset under management above $23 billion. The recent BTC purchase was 18x more than what Bitcoin miners added to the supply.
Just a day after Coinspeaker reported that Grayscale raised $700 million and triggered its Bitcoin-buying spree, we have yet another massive BTC purchase from the digital asset manager. On Monday, January 18, the Grayscale Bitcoin Trust (GBTC) purchased over 16,000 Bitcoins at around $600 million.
This is massive considering the fact that the digital asset manager purchased all of it in a single day. Moreover, it also suggests a strong institutional demand for Bitcoin. Interestingly, yesterday’s Bitcoin purchase by Grayscale was 18 times more than what miners added to the supply.
Last week, Grayscale had already purchased around 10,000 Bitcoins spreading over three consecutive days of purchase. After Monday’s purchase, the total assets under management for the Grayscale Bitcoin Trust (GBTC) now stand over $23 billion. Here’s what Danny Scott, CEO of crypto exchange CoinCorner has to say:
Grayscale were buying $251 M of #Bitcoin on avg per week in Q4 2020.
Last week they did $700 M in 1 day…
And today $590 M…
Pay attention 👀
— Danny Scott ⚡ (@CoinCornerDanny) January 18, 2021
While we have been worrying about the drop in institutional Bitcoin (BTC) buying, the Grayscale data suggests otherwise.
JPMorgan: Inflow into Grayscale Bitcoin Trust Essential
Since Bitcoin has been trading in downward pressure, banking giant JPMorgan said that fresh inflows into Grayscale Bitcoin Trust (GBTC) are essential for the Bitcoin price to trade above $40,000 levels.
As reported by Bloomberg, JPMorgan analysts led by Nikolas Panigirtzoglou noted that Bitcoin can lose further ground if it fails to break out above $40,000. Thus, they added that the world’s biggest Bitcoin fund – Grayscale Bitcoin Trust (GBTC) – shall play a crucial role in keeping the momentum going.
“The flow into the Grayscale Bitcoin Trust would likely need to sustain its US$100 million per day pace over the coming days and weeks for such a breakout to occur,” the said.
On the other hand, Bitcoin whales are also accumulating quietly. As per the Glassnode data cited by Arcane Research, the total Bitcoin addresses with over 1000 BTC has surged by 7.2% since December 2020.
Institutional buying?🏦
The number of addresses holding at least 1000 BTC has skyrocketed lately.
The growth from January to December last year: 6.7%
The growth from December until today: 7.2%Read more in our weekly report tomorrow: https://t.co/xlQH8LeQyH
Data: @glassnode pic.twitter.com/Gkn6dxH5Cd
— K33 Research (@K33Research) January 18, 2021
Currently, there are 2,318 cryptocurrency wallets holding more than 1000 Bitcoins. Institutions continue to purchase Bitcoins even today, if not as aggressively as the last month. Later this month, asset manager Guggenheim Partners is set to gain Bitcoin exposure through the Grayscale Bitcoin Trust.
In its filing with the US SEC, Guggenheim has proposed a $500 million investment in Bitcoin from its $5 billion Macro Opportunities Fund. Hopefully, we get to see some more institutional inflows this year.
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