Wall Street Accumulation of Bitcoin Continues Despite Consolidation

  • BTC continues to be accumulated by Grayscale, a leading digital asset fund manager.
  • It was noted that the firm’s leading Bitcoin Trust added 12,319 BTC to its coffers in a single day.

Bitcoin Continues to Be Accumulated by Grayscale

Bitcoin continues to be accumulated by Grayscale, a leading digital asset fund manager.

Kevin Rooke, a technology analyst, noted that “Grayscale’s 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, these inflows may slow for the time being. As has been widely reported, the firm has temporarily halted new investments into six of its Trusts.

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This is only temporary and is likely related to firstly, the holiday season, and secondly, a large unlock of private shares of the Trusts, which can now be sold on the secondary market.

Some think that this may mean there will be limited inflows into Bitcoin and Ethereum over the next few weeks, but this appears to only be a temporary setback for the market. Additionally, other institutional players are accumulating the leading cryptocurrencies via other vehicles.

Not the Only One That Thinks So

This recent confirmation of a large Grayscale purchase comes as MicroStrategy, the American business services company, has confirmed a large Bitcoin purchase for its Treasury:

“TYSONS CORNER, Va.–(BUSINESS WIRE)–Dec. 21, 2020– MicroStrategy® Incorporated (Nasdaq: MSTR) (the “Company”), the largest independent publicly-traded business intelligence company, today announced that it had purchased an additional approximately 29,646 bitcoins for approximately $650.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $21,925 per bitcoin, inclusive of fees and expenses.”

The firm now holds “an aggregate of approximately 70,470 bitcoins, which were acquired at an aggregate purchase price of approximately $1.125 billion and an average purchase price of approximately $15,964 per bitcoin, inclusive of fees and expenses.”

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MicroStrategy sees the leading cryptocurrency as a superior investment to cash. Commenting on the recent investment, Michael Saylor of Microstrategy said:

“The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value.  We believe the proactive management of our balance sheet, combined with the improved revenue and profitability performance of the Company, have been significant factors in the recent appreciation in our stock price.”

These corporations and funds investing in Bitcoin for the long run will likely restrict the amount of BTC on the market, thus pushing up prices over time assuming demand for the cryptocurrency increases.

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Price tags: xbtusd, btcusd, btcusdt
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Wall Street Accumulation Continues With Massive Bitcoin Purchases by Grayscale

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Author: Nick Chong

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