Institutional crypto investment giant Grayscale now has $ 20 billion under its control, as its Bitcoin (BTC) buys production by almost three to one.
As noted by the data analysis feature Coin98 Analytics on January 1, the gray scale bought almost three times more BTC than what was added to the market in December 2020.
It’s official: miners can’t produce enough Bitcoins
Last month, the company added a total of 72,950 BTC ($ 2.132 billion) to its assets under management (AUM). During the same period, miners generated only 28,112 BTC ($ 821.7 million) – 38.5% of the gray scale buy-in.
The figures underscore what many have described as a continuing liquidity squeeze on Bitcoin, in which large buyers suck out any available offer and remove it from circulation, sending it to cold storage for long-term storage.
As reported by Cointelegraph, the phenomenon was already visible in November, but December saw a clear increase in demand for gray scale and other institutional entities.
The gray scale now controls $ 20 billion in cryptography
As the clock struck midnight on New Year’s Eve, CEO Barry Silbert in shades of gray famous bringing the company’s total AUM in its various crypto funds to more than $ 20 billion. Just a year ago, the figure was just $ 2 billion.
The company remains the largest institutional player in the Bitcoin landscape, with its $ 17.475 billion in BTC far surpassing any other player in the market. Newcomer MicroStrategy, while not an investment business, now controls 70,470 BTC ($ 2.06 billion).
In the future, analysts predict that greater demand for the miners’ fixed supply of “new” bitcoins will only serve to create a bidding war and raise the price. Sellers have already faced firm determination from buyers in December, when new historical records failed to produce significant and lasting setbacks.
At the time of publication on Friday, BTC / USD continued to trade above $ 29,000, reaching a new high of $ 29,500 overnight.