Bitcoin (BTC) Institutional Inflows Show No Signs of Slowing Down , Grayscale Bitcoin Trust Clocks $16.3 Billion

Bhushan Akolkar
December 29, 2020
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Wondering why Bitcoin (BTC) hasn’t corrected much from its all-time high above $28,000? Well, the institutional inflows into Bitcoin (BTC) shows no signs of slowing down despite the massive rally recently. Citing data from Bybt.com, crypto analyst Joseph Young shows that institutional inflows in the Grayscale Bitcoin Trust (GBTC) have been at their peak in the last few days.

Well, the sharply rising graph clearly indicated that institutions have turned more aggressive at every level of BTC price rise. The institutional inflows throughout Q4 2020 have been massive and won’t be stopping anytime soon. In the latest update, the Grayscale Bitcoin Trust (GBTC) shows that the total assets under management have moved past $16.3 billion. This is a massive $2 billion jump from its previous update on Christmas Day.

GBTC is one of the biggest crypto funds by Grayscale and accounts for 84% of its total assets under management of $19 billion. Over the last month, the shares of Grayscale Bitcoin Trust (OTCMKTS: GBTC) have also appreciated by 30%. Presenting some more interesting data points, Cryotuquant CEO Ki-Young Ju notes that 16% of BTC’s realized market cap is now owned by institutional investors.

Yesterday, Ki-Young Ju also mentioned that fewer whales are depositing at exchanges than before. Earlier this month, CoinGape reported at two instances where whales had been making massive deposits to the exchanges. The BTC whales usually deposit exchange for profit booking and liquidate their holdings at a higher BTC price. However, it has been found that during the recent deposits, institutions have sucked-up all the liquidity preventing BTC from correcting and rather pushing its price northwards.

JPMorgan: Bitcoin (BTC) to Be Worth $650,000

Well, the Bitcoin (BTC) price predictions by some of the top financial analysts seem to have no limits. In a JPMorgan report accessed by Express UK, the banking giant predicts that BTC price will be worth $650,000 one day. The banking giant said:

“Alternative ‘currencies’ such as gold and bitcoin have been the main beneficiaries of the pandemic in relative terms growing their assets for investment purposes by 27 percent and 227 percent, respectively.”

This is even more than what the famous Winklevoss twins predicted recently. As per the Winklevoss brothers, the BTC price can reach $500,000 very soon and topple Gold’s market cap of $9 trillion. Recently, crypto analyst Max Keiser tweeted that “Bitcoin will increase ten times from here by end of 2022 or early 2023″. On Monday, December 28, he also noted that BTC’s will soon hit $35,000 as per its rising hash-rate metrics.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.