In June, Grayscale Investments, an American crypto asset management company which is also one of the magnates in crypto asset fund, renewed its investment scale again. According to the twitter post, the company manages a total of $20.4 billion worth of crypto assets, with the Bitcoin Investment Trust (GBTC) accounting for nearly 90% of the total at $16.173 billion worldwide. Those accounted for two-thirds pledges of CA（Certificate Authority） , and less than a third of that is currently available for global users. In the bear market over the past year, the two largest institutional investors, institutional investors and retirement accounts of CA, accounted for 79% and 18% respectively, with a combined share of 97 %. However individual investors accounted for just 3%. —
In the second quarter of this year, the two largest institutional investors: institutional investors and retirement accounts, accounted for 84% and 14.5% respectively, bringing their combined share to 98.5 %. But individual investors accounted for just 1.5%.
It suggests that large institutional investors are stepping into the market at a much faster pace than retail investors. At present, lots of retail investors are still on the sidelines.
It was previously reported that Grayscale invested 1.5 times as much BTC in its Bitcoin Investment Trust (GBTC) as it did in the same period. In theory, Grayscale took up all of the selling pressure from the miners nearly two weeks after the halving.
Moreover, Grayscale Investments was rumoured to have bought nearly a third of new Bitcoins in the three months before Bitcoin halved on May 12. A blockchain fan named "Kelly" posted on Reddit that Greyscale added 1670762 Bitcoin to its Bitcoin Investment Trusts between 2019 and 2020. Also she said, "These Bitcoins have been locked up for 24-36 months" , which means they will not be sold for at least two to three years. Twitter user Michael Robert, who expanded on Kelly's findings, explained that it means the agency's money has been already in place. The CA pledge rate halved will continue, Smart contracts are required to be halved on demand, and the interest rate of BTC-ETH-EOS-BCH will have to be reduced in multiples in the future to achieve a higher and more stable financial order.
Institutional demand is likely to lead to a rise in the crypto asset market, however some investors don’t think it is positive. At the current rate of accumulation of CA（Certificate Authority）, it could be the largest holder. Some even believe that if the situation continues until the end of next year, CA’s holdings will be as large as Satoshi Nakamoto's. Bitcoin already has suffered from centralization of the miners, and a financial institution could make it even worse. A Reddit user suggested identifying the Grayscale and the CA’s address and refused to sell them. But in an anonymous address, it will always be a mystery. Institutional investors have made it increasingly difficult for retail investors to buy Bitcoin at the right time.
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