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[Emitdama]

I like the fact that lots of institutional investors are becoming interested in Bitcoin, and I’m happy about that because it means that more money will be going into Bitcoin steadily and it become more recognized and will become a normal investment where big investors will investing regularly.

Although in some way I am worried about it, I’m always thinking in my mind if these people are going to be holding these huge amounts of BTC forever, which of course is not possible, and another question is what’s going to happen when they eventually sell their BTC that they are holding? The market is going to crash heavily. But whatever, before then things are going to be a little different.

[bitgolden]

I didn't consider it from the perspective of miners. It is really shocking that grayscale all by itself can absorb all the miners all by themselves. Every single miner in the world could sell all their coins and just grayscale would be able to not only buy their coins, but also buy more to increase the price as well. It is really a very very important part of crypto world right now.

The moment grayscale decides that they are not willing to buy more, will be a very sad moment for bitcoin as a whole, I would prefer that they would continue their purchasing constantly, in order to keep the bullish run going on. I know they can't handle it all by themselves but they are creating a huge help for every bull minded person out there, they are creating a big base to work from.

[fillippone]

In my thread Everything you wanted to know about Grayscale BTC Trust but were afraid to ask! I analysed that buy with the enclosed spreadsheet.
It is quite actually to spot that buys from Greyscale.
They actually closed the primary market after those buys. Quite strange.

Anyway the important thing to remember is that those coins will be locked for six months and so those will be available to sell on the last days of March next year!

Also another fun fact is that you probably don’t realise how big Grayscale is until you compute their daily fee: more than 24 BTC. Every given day, for no risk.

[SquirrelJulietGarden]

The open source website for Bitcoin Treasuries in Publicly Traded Companies is a cool supplementary ingredient for your topic.

Its github: https://github.com/nvk/bitcointreasuries.org

[fillippone]

The open source website for Bitcoin Treasuries in Publicly Traded Companies is a cool supplementary ingredient for your topic.

Its github: https://github.com/nvk/bitcointreasuries.org

Hello, good finding. I already made my own version here:

Bitcoin Treasuries


I supplemented the information on the website with a few additions.

[el kaka22]

Grayscale ceo is the famous one that said he lost a lot of money and not got fired, so it makes sense someone like him would be the first one to get into bitcoin with such a huge amount, it is not really that shocking that they were the first ones, but in reality I believe other places still has some time before they could profit, we are still not that ahead in the constitutional money right now.

I understand that grayscale was the first one to get in and they will probably make a ton of money and they will make the customers happy but we are about 3-5 years away from all of wall street having one crypto desk or even a group, it will eventually happen because that is the nature of the business, flow with where money goes but that moment is not right now and not because of grayscale.

[exstasie]

Seeing this thread bumped reminded to me to check on the GBTC premium over spot.

My theory is that all this buying by Grayscale is an arbitrage play. Institutional investors are buying in private placement at NAV, then hedging their position, pocketing the difference.

In February, the GBTC premium over spot was ~30%. In August, it was 15%. Now it's only ~8.4%!

So all this Grayscale news isn't bullish in and of itself. Investors are just buying from one hand and selling to the other.

I actually view it as bearish for Grayscale. GBTC's first mover advantage is weakening as alternative regulated options for Bitcoin exposure emerge. Their management fee and premium over spot just aren't worth paying anymore.

[SquallLeonhart]

They are usually buying OTC at the same price from richer people and bitcoin whales, they do not buy all at once from just one place but they find people with tens of thousands of bitcoins who do not want to disturb the market by selling it all and they do not want to disturb the market by buying it all on the market neither so they get together and make the deal on paper face to face to make it more legit and deal is done OTC which doesn't change the prices in the market directly, maybe the news of it could change something.

So, there is no need to question if they actually bought it or not, they totally did because they declared it to SEC and you can't do that without actually buying and just trick SEC into thinking that is where the money went while spending it somewhere else.

[perfect999]

I agree that OTC could be the way to go but if you are really buying that much, wouldn't buying from the market make it better? I mean think about it, the price is 10k and you want to buy 700 million dollars worth of bitcoin, shouldn't that mean you would increase the market a ton?

People would see that you are buying from one exchange and they will want to buy/sell in order to do arbitrage to make money thanks to you, but the best case would be price going up no matter what since not that many people have 700 million dollars and not that quickly, worst case would be price still standing still, grayscale is not losing anything at all. I would say OTC is the "safe" method and they probably did that obviously, but market buying would have made it a lot more volatile and increase the price as well.

[so98nn]

[...]
In February, the GBTC premium over spot was ~30%. In August, it was 15%. Now it's only ~8.4%!
So all this Grayscale news isn't bullish in and of itself. Investors are just buying from one hand and selling to the other.
I actually view it as bearish for Grayscale. GBTC's first mover advantage is weakening as alternative regulated options for Bitcoin exposure emerge. Their management fee and premium over spot just aren't worth paying anymore.

The Grayscale is all about those projects which come in hot like hell-boy and vanish like melting ice-cream. Yeah I like to think that way about it. If you study the whole project's trading parameters then it's but obvious that they are turning into playground of bullish and bearish trading. Also I feel that they are since biggest project out of no-where (somehow) which works on the Market Price Vs. Enterprises holding price, it could be manipulated very easily.

If they are putting huge investment into it then it could random plot or very thoughtful plot to change the BTC scale and help their investors to grow meanwhile. I don't know but this is what it is.

[beerlover]

These big companies getting involved with nearly a billion dollars total are actually setting an example for the other huge ones as well and that is what matters to us right now. Grayscale is just a milestone, this one did this huge bet and if they lose a lot of money jp morgan will probably think they shouldn't, but if they make a ton of money jp morgan will say maybe they should get in.

These are the type of stuff that I really care about, if there is tens of billions of dollars going into bitcoin soon in the near future looking at these examples, that means this is a great example for future. Even if they end up losing though (which they won't) in the long run bitcoin will continue to rise, even if it falls time to time it will make a profit which is why I think big companies will get in sooner or later.

[exstasie]

I agree that OTC could be the way to go but if you are really buying that much, wouldn't buying from the market make it better? I mean think about it, the price is 10k and you want to buy 700 million dollars worth of bitcoin, shouldn't that mean you would increase the market a ton?

I would say OTC is the "safe" method and they probably did that obviously, but market buying would have made it a lot more volatile and increase the price as well.

By "buying from the market" I assume you mean on exchanges? Why would big buyers want to do that?

It would be great for us BTC holders if they market bought $700 million on Coinbase, but it would also make it much more expensive for them to accumulate their coins!

Big buyers want the price to go up after they accumulate, not during.