No, Grayscale is not a bottomless stomach with the ambition and ability to devour all Bitcoin (BTC) on the market. When the investment fund stops swallowing BTC, it gets noticed – and is felt in the markets?
Grayscale satisfied with Bitcoin?
Grayscale had adopted A few months ago a strategy of purchasing Bitcoins, with a gargantuan appetite that did not go unnoticed: the investment fund gave the impression of wanting to grab all the Bitcoins in circulation.
The Grayscale Bitcoin Trust Fund (GBTC) reported every week of its acquisitions of Bitcoin near Securities and Exchange Commission (DRY).
But for a month now, no such statement has been made on behalf of the GBTC : the last date on which Grayscale has acquired Bitcoin dates back to June 25, 2020, for an amount of 20,000 BTC.
A spokesperson for the investment fund revealed that the halt was temporary and, linked to a period of administrative slack.
It’s the holidays, even for Bitcoin!
Grayscale has a special feature that sets it apart from other investment funds: it does not make purchases for speculative purposes.
The company buys Bitcoins, on the other side of the process, investors buy shares in Grayscale : the value of a share would be approximately 0.00095891 BTC. In the second quarter, 84% of investments came from institutions, an indicator of their interest in Bitcoin.
What is the reason for this sudden decrease in institutional investors? The first reason is seasonal since July is generally a month of slowdown in investment activity; the second reason is undoubtedly linked to the average performance of the Bitcoin : since May 2020, the price of Bitcoin More or less stabilized with no signs of improvement or depreciation, except for the very last few days.
A resumption of BTC purchases by the GBTC would therefore be possible; What if this comeback coincided with the bull run and Grayscale still had as much of an appetite as before, could we have a double bull run? In July, even the strongest bulls are allowed to rest to hibernate bears in winter – at least we hope so.
Litecoin, welcome in the Silver Age