Institutional investors don’t seem to get fed up and buy more Bitcoin (BTC) on Grayscale than the miners can produce.
The demand for the digital gold far exceeds supply and last Monday alone, Grayscale bought 16,244 BTC
The world’s largest crypto hedge fund Grayscale now holds almost three percent of all Bitcoin in circulation. Furthermore, the investment company has increased its crypto holdings by an average of 10 percent in the last few months .
Grayscale buys $ 607 million worth of Bitcoin
Last Monday, January 18, 2021, the New York 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 BTC generated daily by mining. Miners currently generate almost 900 Bitcoin a day. So it would take all miners together 18 days to mine the amount of BTC purchased from Grayscale. According to the Twitter user WhalePanda, well-known in the crypto space, Grayscale has even acquired over 60,000 BTC in the last 30 days, for which miners would have to work more than two months.
In addition, Grayscale now manages assets worth 27.1 billion US dollars, of which almost 23 billion US dollars are invested in Bitcoin.
The fact that the investment company is continuing to buy BTC also speaks for continued high demand from institutional investors. This is why Nikolaos Panigirtzoglou, investment strategist at JPMorgan, believes that Bitcoin will soon be heading towards a new all-time high given the current demand. In addition, he thinks it is possible that a BTC rate of 146,000 US dollars can be achieved in the long term .