BTC price new highs
Arguably one of the biggest beneficiaries of the current year is Grayscale. The company that buys and manages Bitcoin for institutional investors announced another $300 million acquisition. This only increases the total assets managed by Grayscale to a significant $16 billion, but more importantly shows that the Immediate Bitcoin price is always stimulated by increased demand.
Bitcoin price driver Grayscale: purchase of 12,300 BTC
Grayscale published an announcement via Twitter in the middle of this week. The update, dated 12/22/2020, shows that the company’s AUM (=assets under management) now stands at $15.9 billion.
In parallel, recent figures show that the firm have once again added bitcoin (BTC) worth around 300 million to their Grayscale Bitcoin Trust (GBTC).
Grayscale bitcoin purchases, Dec 2020.
The sum is equivalent to around 12,300 BTC. The latest quarterly report for Q3 2020 also shows that a new record has been set in terms of monetary inflows in every quarter this year.
This is especially interesting from the perspective that Grayscale is not currently allowing any new customers. In other words, obviously the existing customers are still interested in accumulating Bitcoin which, among other things, acts as a positive driver for the Bitcoin price. Another special feature of Grayscale is the fact that accredited investors have to hold the products or Bitcoin for at least six months. This type of “locking” also creates a significant short-term reduction in supply; another positive factor for the Bitcoin price.
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Institutional investors increase demand
It turns out that offers from companies like Grayscale are especially popular among institutional investors. This probably results mainly from the so-called “convenience” effect. This means that buyers do not have to deal directly with either the purchase or the custody.
We can state that Grayscale’s figures primarily mean that there is increased buying pressure as well as a reduction in supply in the short to medium term. In view of new Covid-19 packages to be passed in the U.S., companies are probably bracing themselves against a devaluation of the U.S. dollar.