‘Pay attention’ – Grayscale adds 18 times bitcoin mined supply in one day

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Asset manager Grayscale added 18 times more Bitcoin (BTC) than miners added to the offering in a single day on January 18.

As various data sources confirm, Grayscale, which remains the biggest institutional buyer in the Bitcoin space, bought a total of 16,244 BTC ($ 607 million) on Monday.

BTC purchases accelerate again

The giant sums are among the largest on record and are an order of magnitude larger than even Grayscale attempted to do last week. The company used to make daily purchases, but took a break during the holiday season and cut its allowances in the first week of the New Year.

Monday’s activities bring its total assets under management (AUM) to nearly $ 23 billion. As Cointelegraph reported, the total has increased tenfold in 2020.

“Grayscale was buying $ 251 million worth of #Bitcoin on average per week in Q4 2020,” said Danny Scott, CEO of UK-based cryptocurrency exchange CoinCorner, tweeted.

“Last week they made $ 700 million in 1 day … And today, $ 590 million … Pay attention.”

Table of daily Bitcoin additions in grayscale. Source: GBTC Bitcoin Tracker / Twitter

Shamelessly optimistic about Bitcoin

The move underscores both Grayscale’s continued confidence in Bitcoin as a long-term game and that of institutions choosing Bitcoin over any other form of macro asset.

Despite mixed messages from fellow asset manager Guggenheim, who is expected to begin his exposure to BTC this month, industry sources say the public announcements obscure the true extent of institutional involvement.

“Institutional demand is huge and most are silent,” said Gemini Exchange co-founder Tyler Winklevoss said last week, berating gold bug Peter Schiff for claiming that players were in fact not interested in Bitcoin.

Bitcoin holdings in grayscale against the BTC / USD chart. Source: CryptoQuant

Data from on-chain analysis resource CryptoQuant, meanwhile, reveals changes in Grayscale’s buying habits, with the end of 2020 seeing the biggest near-term increase in BTC holdings of the year.

Earlier, analysts at JPMorgan argued that Grayscale Bitcoin Trust entries would need to maintain $ 100 million per day for Bitcoin to have a chance of recovering price levels of $ 40,000.