This week we received more proof that institutions are buying up Bitcoin. I highly recommend reading this recent Decrypt piece titled “Hedge funds are buying Bitcoin despite Goldman Sachs’ skepticism.”
Here’s an excerpt:
Since Bitcoin’s block reward halving, digital asset manager Grayscale Investments has purchased more Bitcoin, on behalf of its institutional clients, than has been mined. The world’s largest digital assets manager continues to accelerate its rate of Bitcoin acquisition, regardless of what Goldman Sachs has to say about the matter.
According to data supplied by independent researcher Kevin Rooke, Grayscale added 18,910 coins to its Bitcoin Trust in little over two weeks since the halving. Only 12,337 coins were mined in that time period, meaning Grayscale has acquired the equivalent of 153% of all Bitcoin produced since the block reward halving.
So just one institutional fund — Grayscale’s Bitcoin Trust (GBTC) — has bought up more BTC since the halving than has been created by miners. And that’s just one fund.
There are countless institutional crypto operations, including Fidelity Digital Assets, Coinbase Institutional and others that are in the market as well.
The halving seems to be working as intended. It’s driving more buying interest. It cut the new supply of bitcoin in half. And importantly, institutions are showing increased interest in crypto — particularly bitcoin. I continue to watch institutional interest in BTC very closely.
With interest rates likely to remain extremely low for the foreseeable future, “non yielding” assets that provide inflation protection, like gold and bitcoin, should continue to grow in popularity. Many bonds are paying zero — or negative yields — once you factor in inflation.
And even though Goldman Sachs put out a negative report on Bitcoin this week, it doesn’t seem to be affecting supply or demand. Bitcoin is holding up strong at over $9,400.
As I said last week, we may get a BTC selloff if the stock market falls sharply. But all things considered, things are going well.