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Grayscale goes on the biggest BTC spending spree it ever has

Photo of: Joseph Stone
by Joseph Stone

Institutional adoption of Bitcoin continues. Within one day, asset manager Grayscale acquired 16,244 BTC for its Grayscale Bitcoin Trust fund.
Is Bitcoin’s volatility a barrier to wider institutional adoption? “Currently, they [institutional investors] are small … about $700 billion in Bitcoin, about one percent of which is institutional money,” recalls a Goldman Sachs executive.

But that share is growing. And the size of the Grayscale Bitcoin Trust (GTBC) can attest to that. The asset manager’s fund now counts 632,000 Bitcoin, representing a value of $24 billion.

But most importantly, it continues to grow. As Decrypt reports, on January 18, Grayscale made another massive acquisition of Bitcoin. The company was disbursing more than $600 million in 24 hours.

This transaction allowed her to grow her BTC Trust by an additional 16,244 tokens. This represents the most significant purchase to date in the market. Most importantly, the transaction reflects the growing interest of Grayscale’s customers.

This massive acquisition of Bitcoin by the investment firm confirms the recent statements of its CEO. Michael Sonnenshein testified to the “recent” arrival of institutions such as pension and endowment funds.

In addition, the “size of the allocations they make is increasing rapidly as well,” he told Bloomberg. And the result is impressive for Grayscale. The fund manager now holds nearly 3% of all Bitcoin in circulation.

The manager and its clients are therefore betting on the continued growth of Bitcoin. A week earlier, Grayscale reopened her fund to new investors. In the process, he bought 2000 BTCs.

But doesn’t the firm, with its more than 600,000 BTCs, have too much power over the asset price? For the analysts of JPMorgan Chase & Co, Grayscale would constitute “a key driving force” on the value of cryptocurrencies.

The bank even believes that its strike force alone could enable it to pull the price of Bitcoin above $40,000 in the short term. However, other growth drivers will be needed to bring its value to 100,000 by August, Pantera Capital’s ambitious target.