Institutional investors can’t seem to get their throats full 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 nearly three percent of all bitcoin in circulation. Furthermore, the investment firm has increased its crypto holdings by an average of 10 percent in recent months.
Grayscale buys $607 million worth of bitcoin
Last Monday, January 18, 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 daily BTC generated by mining. Miners currently generate just under 900 bitcoin a day. So all miners combined would take 18 days to mine the amount of BTC purchased by Grayscale. Moreover, according to WhalePanda, a well-known Twitter user in the crypto space, Grayscale has acquired over 60,000 BTC in the last 30 days, which would require miners to work for over 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 nearly $23 billion of that is invested in Bitcoin.
01/15/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Furthermore, the fact that the investment firm continues to buy BTC speaks to continued high demand from institutional investors. As a result, Nikolaos Panigirtzoglou, investment strategist at JPMorgan, also believes that Bitcoin is heading for a new all-time high soon given the current demand. Moreover, he believes it is possible that even a BTC price of 146,000 US dollars can be achieved in the long term.