Institutional Investors Continue to Buy Bitcoin

[Agios]

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.

[ChiBitCTy]

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.

[Juggy777]

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

[avikz]

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.

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!

[DoubleEdgeEX]

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 

[coinycoiny]

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.

[tbct_mt2]

@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

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.

[shata]

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

 

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??

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".

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.

[mk4]

Why bitcoin is not pumping with such a bit amount of money from institutionals?

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.

[maydna]

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.

[avikz]

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

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!

[CaVO32]

Why bitcoin is not pumping with such a bit amount of money from institutionals?

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.

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.

[davis196]

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.

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.

[tsaroz]

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.

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.

[so98nn]

confidence in BTC's long-term trends.

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.

[Jating]

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.

[Ulven]

(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.

[sunsilk]

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.

[rodskee]

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.

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.

[TravelMug]

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.

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.

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.

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.