The value of the Grayscale Bitcoin (BTC) Trust stands today at over $ 23 billion. Grayscale significantly increased its exposure to BTC in 2020, especially with the entry of new institutional investors. Grayscale Investments CEO Michael Sonnenshein, recently indicated the entry of pension funds as well as other types of institutional investors into the BTC markets.
A pension in BTC
Grayscale currently owns around 3% of the outstanding BTC supply.
Unlike that of 2017, the current rally of the BTC is supported by institutional investors.
In an interview with Bloomberg, Michael Sonnenshein revealed their identity: hedge funds, pension funds, endowments.
The growing increase in institutional investors has enabled the fund BTC of Grayscale of exceed 23 billion dollars .
According to a 2020 survey of Fidelity Investments, 36% of financial institutions in the United States and Europe hold cryptocurrencies or derivatives.
A quarter of them said they bought Bitcoin against 11% forEther (ETH).
A rarity that is a source of difficulty
Grayscale is today faced with the shortage of Bitcoin (BTC) in the markets, the scarcity of BTC should also continue to increase over time.
It is becoming more and more difficult, even for a large wallet like Grayscale, to acquire Bitcoin.
According to an analysis of December 29, 2020 published on Glassnode, 14.5 million Bitcoins would be illiquid.
Many HODlers continue to jealously guard their BTC despite the explosion in their price.
Bitcoin recovered from its major correction that brought it down to the $ 30,000 level. Institutional investors seem to have bought the dips.
Their increase in number in the markets BTC and their gargantuan appetite make more and more plausible the hypothesis of a Bitcoin to $ 100,000 by the end of 2021.
With a Biden administration ready to offer $ 2,000 gift certificates to boost the economy, the attractiveness of BTC as a hedge against dollar inflation should increase. Bitcoin is trading over $ 35,500 at the time of writing this article. Next major bull target: $ 50,000.