Bitcoin has had very few variations in recent months. However, Grayscale says that institutional investors are still betting on it.
Up until now, this has been a very particular year for Bitcoin. Whether it was the momentum that it had in January, the big drop in March, or the side market that it has maintained after halving in May, the truth is that the main cryptocurrency has varied a lot.
However, this has not prevented institutions from investing money in Bitcoin. According to new Grayscale reports, institutional investment reaches USD 57.8 million in Bitcoin every week.
Data on Institutional Investment in Bitcoin, according to Grayscale
According to a new Grayscale analysis, the Grayscale Bitcoin Trust has been seeing mass institutional inflows, averaging USD 43.8 million per week during the first half of 2020.
It is striking that most of these inflows occurred in the second quarter. Although Bitcoin recorded more notable gains in the first months of 2020, as the previous paragraphs state.
Global money printing and lax economic policies are leading investors to bet on alternatives like BTC. For that reason, it is possible to affirm that institutional participation in the cryptocurrency market is growing significantly.
As proof of this, it is enough to remember the headlines in which the name of legendary investor Paul Tudor Jones appeared. At the time, Jones announced that he is investing a remarkable percentage of his net holdings in Bitcoin. Likewise, he explained that he believes that BTC will be the biggest beneficiary of current world inflation.
However, Jones is not the only notable investor who is adding cryptocurrencies to his investment portfolio. According to data from Grayscale’s second-quarter and half-year report, its product BTC Trust has seen mass inflows.
Investment within BTC Trust in Recent Months
In the first half of the year, institutions invested a total of USD 1.4 billion in all Grayscale products, averaging USD 43.8 million worth of Bitcoin per week.
Likewise, weekly inflows into the product grew in the second quarter of the year, in which they averaged USD 57.8 million. One possible reason for this is that, while there are a global crisis and recession, there are investors who are looking for hard or diverse assets right now.
The company also stated in its report that the amount of Bitcoin that investors are buying through its products has exceeded the production rate of the cryptocurrency.
After the Bitcoin halving in May, second-quarter 2020 investment inflows into the Grayscale Bitcoin Trust exceeded the amount of Bitcoin mined during the said period.
This has reduced pressure on the supply of the cryptocurrency and is an overwhelmingly positive sign for its macro perspective, especially in terms of bullish prospects.
The growing number of institutional investors makes the importance of the first cryptocurrency increasingly evident. The ability to recover from all-time highs is proof that Bitcoin is the best option for those who want to venture into the cryptocurrency world.
By Alexander Salazar
