Grayscale said to have added 18 times more Bitcoin (BTC) than miners in 24 hours’ supply

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Bitcoin worth $600 million is being pulled off the exchange as BTC/USD fails to cement support a retest of $40,000.

Asset Manager Grayscale contributed 18 times more Bitcoin (BTC) than the miners added to the supply in just one day on January 18.

As numerous data sources indicate, Grayscale, which remains the largest institutional buyer of Bitcoin, bought a total of 16,244 BTCs ($607 million) on Monday.

BTC buys accelerate again

Giant amounts are some of the highest on record and are an order of magnitude above what Grayscale was able to do just last week. Previously, the company had regular sales but ceased during the holiday season and reduced its allocations in the first week of the new year.

Monday’s operations carry its total assets under management (AUM) to about $23 billion. As Cointelegraph noted, the average growth was tenfold in 2020.

“Grayscale were buying $251 M of #Bitcoin on avg per week in Q4 2020,” Danny Scott, CEO of United Kingdom-based cryptocurrency exchange CoinCorner, tweeted.

“Last week they did $700 M in 1 day… And today $590 M… Pay attention.”

Grayscale daily Bitcoin additions chart. Source: GBTC Bitcoin Tracker/ Twitter

Unashamedly bullish on Bitcoin

The change reinforces both Grayscale’s continued confidence in Bitcoin as a long-term game and that of organizations preferring Bitcoin over some other type of macro asset.

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Despite mixed messaging from fellow fund manager Guggenheim, expected to begin BTC exposure this month, industry sources say that public statements are covering the true scale of institutional participation.

“There is huge institutional demand and most of it is silent,” Gemini exchange co-founder Tyler Winklevoss said last week while berating gold bug Peter Schiff for claiming that players were actually not interested in Bitcoin.

Grayscale Bitcoin holdings vs. BTC/USD chart. Source: CryptoQuant

In the meantime, data from CryptoQuant’s on-line monitoring resource shows improvements in Grayscale’s spending patterns, with the biggest short-term spike in BTC holdings for the year at the end of 2020.

Earlier, analysts at JPMorgan argued that inflows through the Grayscale Bitcoin Trust will need to hold $100 million a day to offer Bitcoin a shot to restore $40,000 in price prices.

 

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