Institutional Investors Buying Up BTC Like Crazy After Halving

[CryptoInvestor]

Institutional Investors Buying Up BTC Like Crazy After Halving
Institutional interest in Bitcoin is experiencing an unprecedented surge, with GBTC alone swallowing up 17% of newly mined Bitcoins.

May 22, 2020

Institutional Investors Buying Up BTC Like Crazy After HalvingNEWS

Both data and first-hand accounts from industry insiders indicates that an interest in Bitcoin (BTC) from institutional investors is accelerating at a rapid pace. This has led some to conclude that the “perfect storm” is about to hit the market.

Price is not a factor
Grayscale Bitcoin Trust, or GBTC, an exchange traded vehicle backed with Bitcoins, has been growing steadily in size over the past several years. However, in the last couple of months, its growth has begun to accelerate. Interestingly, the fluctuation in the price of the underlying asset does not seem to affect this growth pattern. This makes sense, considering that investors have a minimum lockup period of six months.

Grayscale may swallow up 550k BTC by 2021
What makes GBTC an important driver of the market dynamics is not only the fact that, according to its spokesperson, over 90% of the inflows come from the institutional players:

“Since inception, 90% of inflows into our family of products comes from institutional investors”.

But also, its holdings diminish the circulating supply of Bitcoin, as its assets are locked away in Coinbase vaults. As of today, GBTC has taken 350,000 BTC out of the circulating supply. This represents 2% of Bitcoin’s circulating supply, not taking into account the number of lost coins.

Since 2019, GBTC has consumed 100,375.93 BTC, which is 17% of all the Bitcoins mined during this time period.

In the last three months, the pace at which institutional investors have been investing into GBTC has tripled. If this trend continues, then in another three months, it will be holding 400, 000 BTC, and in another 6 ½ months after that — March 2021, it will accumulate around 550,000 BTC or 3% of the total supply.

Furthermore, if this forecast comes to fruition, it will imply that GBTC will be gauging up 75% of all newly mined Bitcoins during this timeframe.

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

[zendicator]

Thats the right thing to do. Buy more bitcoins and dont fomo when bull run comes. I think instituional investors are buying slowly to avoid the pump of bitcoin.

[UNIVERSE]

I am sure that they buy the BTC because they believe in this coin can reach the highest pump later. therefore they buy the coin right now when the market is still down. Do you mean that? But, what about the risks? It may be so risky for them but they have money, so never a problem.

[Alter]

Bitcoin halving always has their best seat on the crypto world. If there are growing institutions that are interested in crypto world, it is exactly normal. Moreover right now, the crypto world is booming with the ways of the crypto world doing well.

[Andruha1993]

This is absolutely normal. People now see the prospects of Bitcoin and therefore begin to buy up without hesitation. Because blockchain and crypto is innovation, and innovation needs to be monitored.

[VeryWellDone]

This is really something that I expected going into this pandemic period, nobody wants to touch cash, and everyone wants to move digitally. Everyone is now believing in cryptocurrency as the next form of cash.

This is what businesses should also start doing, and not just these investors who are looking into extend their cash flow. Sample is what Concordium is offering to as a solution to these businesses to finally use blockchain technology. They're seeking to unlock and capture all of the business transactions that could benefit from blockchain technology. More business today is not being done due to high cost, and a lack of trust in counterparties, Concordium fixes that through its ID mechanism and smart contract functionality.

[trauchot]

Many big players understand that in the near future Bitcoin will start to rise in price again and it will be possible to get an excellent profit from this, therefore they buy bitcoins, so everything is logical and correct here.

[sampoerna]

Probably they starting to like cryptocurrency because of the current pandemic. Well, it is great news for us when getting big investors in the crypto world. But, they must be risky because crypto is not secure enough. There are volatility and high seasons of the bitcoin halving. will the investor help the crypto world?

[Noverteno]

Previous similar cases of halving bitcoin in 2012 and 2016 led to a multiple increase in the price of bitcoin during the year. Therefore, all the far-sighted participants in the cryptocurrency market are now buying bitcoin. In addition, the advent of coronavirus is pushing the world to switch to non-cash forms of payment, including the use of digital currency. With this in mind, the demand for bitcoin and its price should grow in the near future.