Grayscale Hoovering Up New Bitcoin

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  • Grayscale Bitcoin Trust has been buying 53% more Bitcoin than has been mined since the halving
  • It was revealed in April that Grayscale had bought 50% of all newly minted Ethereum this year
  • Statistic shows that Bitcoin is still very sought after by institutions

Grayscale Bitcoin Trust has been buying up more Bitcoin than it’s possible to mine since the halving, in a sign that the appetite for the cryptocurrency is stronger than ever. According to researcher Kevin Rooke, as of midnight Thursday, 12,337 bitcoins had been mined since the halving on May 11 while Grayscale had snapped up 18,910, a 53% difference. This statistic shows that institutional interest in Bitcoin remains incredibly strong at a time when it’s use case as a hedge against regular markets is coming into its own.

Bitcoin Shopping Spree

Grayscale is one of the best-known institutional cryptocurrency investment firms in the world, allowing high net worth individuals and companies to invest in the ecosystem without the risk of holding the coins themselves. The fact that they have been snapping up Bitcoin quicker than it can be mined is suggestive of the narrative that has been building throughout 2020 that Bitcoin is a great hedge against traditional markets, which are taking a battering on the back of the coronavirus pandemic.

Bitcoin has received a huge amount of backing during this period, from respected hedge fund managers like Paul Tudor Jones to economy renegades like Robert Kiyosaki, and it seems that institutions, funds, and wealthy individuals are putting their money where their mouths are.

Grayscale Big on the Top Two

The news that Grayscale has been going on a Bitcoin shopping spree is less of a surprise after it was revealed in April that the Grayscale Ethereum Trust had also bought 50% of all newly minted Ethereum in 2020, suggesting it also has faith in the second biggest cryptocurrency as well.

What makes these figures even more impressive is that they come at a time when Goldman Sachs has dismissed cryptocurrencies as “not an asset class” in a recent phone call with investors, showing that while Bitcoin has come a long way it still has some way to go before everyone is convinced.