Grayscale Investments has purchased more than 1.5 times the amount of bitcoin mined since Bitcoin’s third halving for their trust in bitcoins. This indicates that there is a strong institutional demand for the cryptocurrency, which is expected to increase considerably after the coronavirus crisis.
GBTC buys 1.5 times the amount of Bitcoin mined after halving
Grayscale Bitcoin Trust (GBTC) has accumulated the number of BTC has bought since the third half of Bitcoin. Between May 12 and May 18, the week following the halving, the Grayscale Bitcoin Trust acquired 12,021,153 320,371 bitcoins representing $ 112,336,936, according to the filing of Grayscale Investments with the Securities and Exchange Commission (SEC) of United States. .
The following week, from May 19 to 26, the trust added 6,889 32,628,892 bitcoins representing $ 65,231,657. During the two week period, Grayscale Investments purchased a total of 18,910,479 49,263 bitcoins. Analyst Kevin Rooke tweeted Wednesday:
The Grayscale Bitcoin Trust has purchased 18,910 bitcoins since it was halved. Only 12,337 bitcoins have been mined since the halving.
This means that the Bitcoin Trust Grayscale added more than 1.5 times the number of bitcoins mined during the two week period after the third half of Bitcoin. This represents a significant increase in your purchases. For the 100-day period ending May 17, news.Bitcoin.com previously reported that Grayscale Investments had purchased 33% of all bitcoin mined.
“The Bitcoin Trust Grayscale is at a whole new level in 2020 … Institutional money has come,” said Rooke last week. In response to its analysis showing the GBTC’s average weekly investment of $ 29.9 million in the first quarter of 2020, a substantial increase from $ 3.2 million in the first quarter of last year, the CEO of Grayscale , Barry Silbert, hinted at Twitter: “Wait until you see the second quarter.”
As of May 28, Grayscale Investments’ total assets under management (AUM) were $ 3.7 billion, spread across 10 cryptocurrency investment products. Among them, the Grayscale Bitcoin Trust has the largest assets under management of $ 3,302.2 million, followed by the Grayscale Ethereum Trust with assets under management of $ 292.6 million. The gray scale previously revealed that 88% of all capital inflows in the first quarter came from institutional investors, dominated by hedge funds. The Bitcoin Trust and the Ethereum Trust recorded record capital inflows.
Analysts have predicted an increasing institutional demand for cryptocurrencies after the global economy has recovered from the coronavirus pandemic and the economic crisis. Several billionaire investors have also recommended investing in bitcoin as they expand their portfolio’s exposure to cryptocurrency. With the large amount of bitcoin that Grayscale purchased, Rooke noted:
Wall Street wants bitcoin, and they don’t care what Goldman Sachs has to say.
His tweet followed Goldman Sachs’ call to Bitcoin, during which the company highlighted its negative outlook for cryptocurrency. Goldman Sachs has told clients that cryptocurrencies “are not an asset class”, ignoring a US Commodity Futures Trading Commission (CFTC) decision that has determined that cryptocurrencies are a commodity . Meanwhile, another large investment bank, JPMorgan Chase, is preparing for bitcoin and has reportedly started providing banking services to crypto clients.
What do you think about the amount of BTC Grayscale Bitcoin Trust is buying? Let us know in the comment section.
Image credits: Shutterstock, Pixabay, Wiki Commons, Greyscale Investments
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