Bitcoin Forum

Since March 2020, assets managed by Grayscale Bitcoin Trust have increased from US $ 1.577 billion to US $ 3,451 billion. This increase signifies increasingly intense demand from institutional investors.
The number of Grayscale Bitcoin Trust assets that reached their highest point, when the price of a Bitcoin landslide was more than 50 percent of its peak price, is a positive sign. This means that financial institutions have high confidence in BTC's long-term trends.

This kind of info is certainly very telling and I'm glad to see such an increase.  I personally feel the tech with bitcoin has been too slow in terms of advancement /user friendliness/speed/pricing etc.. so it's amazing that this number is up, atm's are being added in droves and being placed in very prominent businesses, and the relative stability of late, even though it wont last for good of course, it's a positive sign it's possible down the road.

@Agios this is not surprising because those institutional investors are getting a bargain deal as bitcoin prices are currently low, and then they’ll hodl it for the long term and make huge amounts of profits from holding it. @ChiBitCTy personally I have found Bitcoins tech to be advanced and fast, and indeed this is a positive sign as people often follow these institutional investors buying pattern, and therefore we should witness more people adopting bitcoin in coming days.

Sources:

https://cointelegraph.com/news/institutional-investors-buying-up-btc-like-crazy-after-halving

https://finance.zacks.com/effect-institutional-investments-stock-market-9976.html

Wow! $3,451 billion is a huge sum! It's bigger than GDP of many countries! But when I look into the market cap of bitcoin, it is still standing at $167 billion only. Have you mentioned the number correctly?? Probably there's a fullstop needed after 3 and not a comma. That portrays a wrong picture!

Or if the number is correct, probably institutional investors are holding future contracts instead of holding physical bitcoins. That's definitely safer for them but not helping actual bitcoin market as no additional liquidity is added here.

May be you want to check the source for the correctness of this information!

Grayscale truly bets hard on Bitcoin. They will become a super-whale if they continue like that - https://cointelegraph.com/news/at-this-rate-grayscale-will-own-34-of-all-bitcoin-by-january 

However, Grayscale is a relatively new company, so I think it´s more remarkable that old school incroporations like Fidelity, Vanguard or JP Morgan enter the market big time. And this seems to be just the situation on the surface - https://www.bloomberg.com/news/articles/2020-06-09/fidelity-says-a-third-of-large-institutions-own-crypto-assets 

Not surprising that some funds gamble on bitcoin. (I can't say invest!)

It's also what most people do, gamble that you can sell it to a bigger sucker than you later.

Its not what btc was meant to be about, its meant to be a currency, but of course it doesn't work as one so hardly anyone uses it. (10 years and there is zero growth in purchases)

We've already seen the decline from $20k, this will surely continue. You are witnessing the slow death of btc.

It takes time to finish accumuation after corrections. Since the last incredible dump because of pandemic announcement from WHO, Bitcoin has gone through a long journey to break the $10k resistance and fell off as correction but still maintained so solidly in the $9k range. The news on whales, and institutional accumulations are good but they don't equal to the very near future growth of bitcoin.

Look at the chart please. It will be so weird and unlogically if bitcoin keeps rising. TBH, I am gonna wait to buy bitcoin back at a price $8k or a little higher price.

Institutional investors are playing always based in their favor. One I could not possibly disagree about this quoted statement below.

 
I have been asking myself late back June of 2019, what could possibly an impact of bakkt and ETFs in Bitcoin market. And I found out, during September when Bakkt was announced to accept bitcoin futures without investors' basically owning physical bitcoin, price dropped.

Most of the whales before 2017 bull run were named before this few financial institutions; Citi, Deutsche Bank, Barclays Investment Banks, UBS AG, HSBC, JP Morgan Chase, Bank of America Merrill Lynch, Royal Bank of Scotland, BNP Paribas, Goldman Sachs and etc. However, I am not doubt thay they had still this bitcoin in their purse til now. These whales are already buying physical bitcoin late 2017 before the bull run, so definitely, they are fully aware of the upcoming bull run and accumulated large sum of it.

In fact, as per observation, whenever institutions say about their participation in the market, price suddenly plummet( aside from external reasons like Plustoken dumping to liquidate stolen funds). And if you observed, bitcoin  market right now is filled already with large whales and normally they are either financial banks or institutions like bakkt, ETF or Grayscale. These of course my motivation to wrote something about them, entitled "Institutional Investors barred cryptomarket to retail investors" (https://www.publish0x.com/about-trading-crypto/institutional-investors-barred-crypto-market-to-retail-inves-xllyjkg).

All of these are tip of the iceberg. As to the current situation and questions why bitcoin liquidy still didn't rise as expected although institutions like Grayscale are holding huge amounts of BTC.

We could summarized potential conclusions here:

1. Grayscale, Bitcoin ETF, Bakkt and etc., are not meant to rise liquidity but only to create an impression that institutions are buying the idea of bitcoin. Investors here are not typically holding physical coin but rather only hedging with the price.
2.Since the market is already filled with mostly whales, market already adopts manipulation as majority of the players have common knowledge about it. So sudden price swing may be controllable.
3.Retail investors are the real players which will rise up the markets' liquidity.

Well if this will keep up price relation purposes.

Because it's not enough. Always remember: for every buyer, there will be a seller. If Grayscale and other retail buyers are buying bitcoin but it's not enough to prop up the price, then it's safe to assume that there's just enough bitcoin being sold hence why the price is almost not moving. It's pretty much just balancing out.

We can hope that bitcoin will have more people to support bitcoin, and yes, they will continue to buy bitcoin, especially if the price is down deeper. It is great news to know that, and hopefully, sooner or later, many more people will buy bitcoin too. If that happens, we will see the bitcoin user's growth, and that can happen in many places. There will be a time to see the bitcoin price will start the rally to the highest price, and at that time, you will have the chance to sell at the highest price too. Perhaps, at this time, people want to accumulate their bitcoin amount first before the price starts to increase so that they can have more and more bitcoin at a low price.

Indeed true! Institutional investors are not participating to directly to the bitcoin market, they are just hedging against the price. That's why the numbers in the portfolio looks abysmal. Literally it makes no sense to us because it is not at all increasing the liquidity in the market.

I would rather prefer organic growth of bitcoin adoption than to cherish the investment billions of dollars into futures contracts as it is not helping us anyway!

My two satoshis!

Pretty much the scenario here. and because of this pandemic, many small to medium crypto users are cashing out to augment their basic needs. so even if these institutional investors are buying, there's enough btc available in the market to buy so the price is not yet rocketing. But if they will continue to buy, we will experience the effect later on as it will show a positive trend in the market. We just need to be patient as it will not gonna happen overnight.

Just because this Grayscale Bitcoin trust is buying more BTC and other cryptocurrencies,that doesn't mean that "institutional investors" are buying Bitcoin.You can't just come up with general conclusions about what the investors will do,based on the behavior of only one small investment trust fund.
In the world of financial markets,where trillions of dollars are moving every day,a few billion dollars is a ridiculously low amount.We can't analyze or predict the behavior of Institutional investors based on such small sum.
I'm reading some news,stating that many investors aren't happy with Grayscale.This company looks shady to me.

It's not just Grayscale Bitcoin. There are many Trust, funds and hedge funds that are investing intensively on bitcoin. And the number of these funds are ever increasing. Panthera capital, a traditional hedge since 2003 is an example of traditional hedge funds into crypto. Many of the newer funds are also backed by many of the hedge funds like Sequoia Capital (since 1972) has invested on crypto hedge fund Polychain Capital.

This is what is important when it comes to the bitcoin investment. There is no way one can earn loads of profit in bitcoin trades within days, weeks or months. Sometimes you might just have to wait for whole year to couple of them. These fat wallet institutional investments are good for bitcoin economy since they contribute to bitcoin market cap more often than private or individual investors.^{in terms of %}

From this individual should take real lesson of holding for long terms and not to freak out when bitcoin dumps itself a little bit.

I really don't know if this is really good or bad in the long run for bitcoin though. This could partly be used for manipulation??? and it's seems that Grayscale has been in the limelight for the last couple of months accumulating as much bitcoin as they can with their deep pockets.

Although this really looks good in paper as it will pour lots of money in bitcoin market that can really push the price in the future, but I think they can significantly influence how the price will go, just saying.

(GBTC) is not currently running a recovery program and may halt builds from time to time. There can be no guarantee that the value of the shares will be close to the value of the bitcoin held by the fund, However, if more funds are created and investors join in for sure we will know a great hesitation in the price of bitcoin.

I have read about this news and AFAIK they continue to buy even the freshly mined bitcoins. Grayscale is confident in bitcoin and they have a reason why they do that and it's only circling about money and finance.

And it's not only them that are buying bitcoin. Even two years ago when JPMorgan Chase CEO - Jamie Dimon called bitcoin a fraud, later on, it's on the news that he bought the dip. Surely, there are others of them that don't want to get exposure to media and like to do it silently.

Institutional investors already done with doing hard research before entering into business, there's a
big chance that indeed it can be use in manipulating
the price of bitcoin, once they've already seen good position and when decent profits is already banking
them, expect to see movements from them.
Hard to say what would be the future for this institutional investors but again the mindsets still remains.
They are for making money, that's all.

It is very possible that they could manipulate the price in their favour. We have heard so many rumours or news before that institutional investors are investing because they know they can manipulate the price because there are no central authority to overlook everything.


This is not the first time though, what's really bothering is that they are publicly admitting that they are stashing a lot, for how long, we really don't know.

I do think that we should note one thing about Bitcoins :

•71% of the people know about Bitcoins in US , which means that people are aware of the fact that Bitcoins is a wonderful side investment , which also includes the big institutions and companies.
      Out of these institutions there are two kind of people :
         •_• One don't wanna share their Bitcoins investments publicly
         •~• The second ones are really open about it .

But at the end of the day , institutions do Invest in Bitcoins and other cryptocurrencies since :

 • Some countries have tax free policy on cryptocurrencies like Bitcoins
• Volatility works amazing for these institutions , plus they sometimes even hire people to keep check on their balance sheet .

But the unfortunate situation is :
  
 × It might mean there would be more whales in the society now , which could be direct in the line of market manipulation.  

Because these institutions don't care about cryptocurrencies like Bitcoins , all they care about is getting rich which could be disastrous for us .

https://news.bitcoin.com/institutional-investors-crypto-investments/ (https://news.bitcoin.com/institutional-investors-crypto-investments/)

47% of the institutional Investors are okay with cryptocurrencies shows a survey.

https://i.ibb.co/KKJZ8x4/morgan-stanley-1068x322.png (https://ibb.co/FHFvd4Z)

Isn't this a good signal for the development of Bitcoin? Institutional investors will certainly not easily decide to invest in Bitcoin if they are not beneficial and worthy. In this case, this explains that the world may now be increasingly accepting the existence of bitcoin, especially for promising investments. We all know that some countries are planning to ban BTC, however the longer it lasts, many more parties accept BTC.

That's cool but the number of institutional BTC investors is still very low in comparison with traditional markets. Unfortunately, the crypto market is still not persuasive for such big sharks

This is a good sign if institutional investors decide to continue buying Bitcoin, the amount is also very large at $ 3,451 billion. Means institutional
investors believe that Bitcoin is profitable, and I am increasingly convinced that the future of Bitcoin will be even brighter. Hopefully Bitcoin can
continue the price goes up, so small investors like me can feel the profit from Bitcoin too.

Institutional investors usually buy into stocks of promising corporations when they see and upsurge in activity or potential. This is based on the fundamental value of the corporation behind the stock.

For bitcoin, this fundamental value comes from the individuals identifying its utility and importance as an investment into a p2p economy where people value their privacy and see their bitcoin holding as a hedge against inflation plus unlimited money printing. If institutions are buying, it could mean they recognize the potential of being left behind when the demand for BTC grows steadily among people, including HNI's.

Could this be the scenario that custodian facilities are preparing for by hoarding to BTC at current prices?? If enough people start recognizing this and want a piece of the pie, economies of scale will kick in and the institutions will rush to service this whole new class of customers.

Bitcoin adoption has not reached to the level that can actually bring crypto industry and crypto investment to the whole generations of human over the globe. The adoption is on its rise but there are some restrictions from local governments. For whatever reasons behind, they love it, they hate it, they always want to control their local citizens and citizens' flow of capital as well as flow of taxes.

Regarding to institutional investments, they have to make lots of researches, technically, financially, and legally before decide to allocate their capital to bitcoin (at first maybe?) then crypto (at the very end). Fortunately, if they make decisions to invest, their capital will be big. Don't worry about market manipulation from them, it is the market and market has its operational rules as same as other financial markets. It is also a beauty of market. Wise investors will survive and get profits, stupid investors will get loses.

You're right. But, you should understand that, many hands will get into the bitcoin Market as retailers when the time come. Many of those that went into retail purchase of Bitcoin are still struggling with the pandemic and we should wait till the pandemic is over. In short time from now, many other bigger institutional investment bodies will troop into the bitcoin market and it impact  be felt generally.

When there's money involved there are always interest that comes from the business sectors. Many until now it's not that much
but in the long run there are more institutional investors to start working inside.

knowing that they are good with how they observe and assess the flow
Institutional investors who already inside will attract more partners to
also invest inside the market.

Indeed, really optimistic person thinks that Bitcoin will make another high in the future. It is quite to see how these institutional investors are now considering Bitcoin for a valuable asset. It probably THIS IS (https://timesofindia.indiatimes.com/business/international-business/why-institutional-investors-want-cryptocurrencies-in-their-portfolios/articleshow/74671479.cms) the reason why they got the interest in crypto.

Most of them are anticipating the market trend, they are business-minded and soo much to know for the future. They are speculation differently but maybe they foresaw the best position for crypto sooner.

No problem because someday, the number will increase, and many more institutional investors will come to invest in bitcoin. It is a process that still runs until now, and even though the process seems slow, that will be no problem because as long as many of us still spreads the bitcoin news on many ways, people will be curious, and they will search for more info about bitcoin. They will try to invest in bitcoin if they think that bitcoin can help them to make money.

While 2x increase is impressive, I think this should be put into some perspective to understand whether it's truly a big interest. For instance, I read on Investopedia that Grayscale was built similarly to SPDR Gold Trust. So I went on to see how much they're operating with. According to Wikipedia (https://en.wikipedia.org/wiki/SPDR_Gold_Shares), they have 31.7 billion dollars worth of gold. So compared to this 3.5 billion is still quite a small number. And it's just against one of such trusts, not the whole market. My point is that while the interest is increasing, the rate of it increasing might be too low to make any difference.

Institutional investors will soon to control the market and create hypes aside from whales. They are actively participating in the market and keep buying for some reason. That is too intense to see but to know they are not risking their money for anything, they'll have a plan for it things that we never know.

The growing numbers of crypto users emphasize something relevant to how the market will change in the future. In fact, we already have feel it now amidst the pandemic. Online and cashless transaction is mostly we used now, things that Bitcoin places a big role and that we think how it could possibly be more usable in the coming days. If these Institutional Investors are accumulating more Bitcoins, they are pretty anticipating the market movement and to live with Bitcoin.

Today there are a lot of people are making an investment or transferring their funds into the use of the bitcoin because some of them already know that the bitcoin is next and answer to their problem about the economic crisis of the falling down of the fiat currency, and some of us are calling the bitcoin as the safe haven because it does not have a volatile market right now and most of the investors are putting their money when the market price of the coin falls down because this is a good opportunity to make a lot of profit after the market price of the coins back to normal still the market price of the bitcoin are volatile with the unexpected movement came from whales and other large investors.

About 900 BTC is mined every day, which adds to around 8 million USD.
Even if just 50% of miners sell (but I expect it to be more, rather 75% or more) this is 4 mill USD that has to be bought every day for the price to stay at the same level.
If Grayscale was the only one buying it would have to spend 243 million USD every month to keep us from going belo 9k USD per coin. When you think about it this way, you start being bullish, because we've been at this level for months. This means there's a huge flow of fiat money into the Bitcoin ecosystem. Or it's just USDt printer going brrrr ;)

Adoption of the blockchain technology has not met its match in terms of speed, pricing and advancement in technological utility. Although, we hear of the blockchain network, it is obviously there is high resistance in its massive adoptation and opportunities like dips gives windows for financial insitutions to dive in and faten their reserves.

When you compare the traditional and crypto market, always consider the fact the size of crypto market, even existing for a decade, crypto market is still smaller than traditional market. In fact, the growth of crypto market is seen on the numbers from users and prices of coins in the market, on top of those million a day income for exchanges from high trading volumes. Crypto might not be persuasive for big players like the traditional one, but it will definitely will soon, for now only brave are unafraid of the volatility.

Yes they do because they know very well about the importance of Bitcoin. The need and value of Bitcoin is increasing day by day. Bitcoin is an asset to me that you can compare to gold or land. As the value of Bitcoin grows many people are interested in investing in Bitcoin. The number of people buying bitcoin is increasing day by day that's normal.

You cant only just point out on a specific kind of event that proves out that they are buying out coins yet we dont even know that they are accumulating

gradually in the back without being noticed out by the public. They are saying that institutional investors money should come in to this market but

we are pretty sure that theyve already done such thing, maybe not on a full aspect manner but there are already some considerations.

Why do you think that the confidence is high and that they trust in long term trend? Maybe they will dump the moment it will turn bearish, and they will sell when they will reach modest profit, instead of waiting for the moon. Frankly, we have no idea what their strategy is, so I wouldn't make any hopes that institutional investors are going to help create bull market or something.