The grayscale asset manager added 18 times more Bitcoin (BTC) than miners added to the supply in just one day on January 18.
As several data sources confirm, Grayscale, which remains the largest institutional buyer in the Bitcoin space, bought a total of 16,244 BTC ($ 607 million) on Monday.
Buying BTC accelerates again
The giant sums are some of the largest ever recorded and are an order of magnitude above what even in shades of gray was trying last week. The company previously had daily purchases, but stopped during the holiday period and reduced its allocations in the first week of the new year.
Monday’s activities bring its total assets under management (AUM) to almost $ 23 billion. As reported by Cointelegraph, the total increased tenfold during 2020.
“The grayscale was buying $ 251 million on average #Bitcoin per week in the fourth quarter of 2020,” Danny Scott, CEO of the UK-based cryptocurrency exchange CoinCorner, tweeted.
“Last week, they made $ 700 million in one day … and today $ 590 million … Pay attention.”
Incredibly optimistic about Bitcoin
The move underscores the continued faith of the gray scale in Bitcoin as a long-term game and of institutions that choose Bitcoin over any other form of active macro.
Despite mixed messages from fellow asset manager Guggenheim, who is due to begin his BTC exposure this month, industry sources say public announcements conceal the true extent of institutional involvement.
“There is a huge institutional demand and most of it is silent”, co-founder of the Gemini scholarship, Tyler Winklevoss said last week, while scolding the gold bug Peter Schiff for claiming that players were not really interested in Bitcoin.
Data from the on-chain analytics feature CryptoQuant, however, reveal changes in grayscale buying habits, with the end of 2020 seeing the biggest short-term increase in BTC holdings for the year.
Previously, JPMorgan analysts argued that inflows to the Grayscale Bitcoin Trust would need to maintain $ 100 million per day in order for Bitcoin to have a chance to recover the $ 40,000 price levels.