Wall Streeters Are Hoarding Bitcoin Despite Market Correction

Leading digital asset fund Grayscale continues to accumulate Bitcoin .

Technical analyst Kevin Rooke noted: “Grayscale’s Bitcoin Trust added 12,319 BTC to $GBTC in a single day, which is higher than the 11,512 BTC added when Bitcoin broke its ATH last week.”

This shows that despite the recent correction in Bitcoin, there is still a clear increase in institutional demand for Bitcoin .

While Grayscale Trusts are seeing strong inflows, those inflows may slow for the time being, as it has been widely reported that the company has temporarily halted new investments in six of its trusts.

This is only temporary and is likely related to the holiday season and secondarily likely to a large number of private unlocks from the trust that are now available for sale on the secondary market.

Some believe this could mean that inflows into Bitcoin and Ethereum will be limited in the coming weeks, but this appears to be just a temporary setback for the market. In addition, other institutional players are accumulating the leading cryptocurrency BTC through other means.

Recently, Ruffer Investment Company Limited, a well-known British investment management company, allocated 2.5% of its assets from gold to Bitcoin. The company said the investment was worth US$744 million .

“We view this as a small but effective insurance policy against the continued depreciation of the world’s major currencies , Bitcoin diversifies the firm’s investments in gold and inflation-linked bonds and provides a hedge against some of the currency and market risks we see.”

US business services company MicroStrategy has confirmed a large Bitcoin purchase by its Treasury, a confirmation of a recent large-scale Grayscale purchase.

Previously, MicroStrategy, a US-listed commercial software giant, announced that it had purchased another 29,646 bitcoins at an average price of $21,925, with a total value of more than $650 million. According to previous purchase data, MicroStrategy currently holds 70,470 bitcoins at a total price of $1.125 billion and an average price of $15,964.

MicroStrategy sees the leading cryptocurrency as a superior investment to cash. Commenting on the recent investment, Microstrategy’s CEO Michael Saylor said:

“Today’s announcement of the acquisition of additional Bitcoin reaffirms our belief that Bitcoin is a reliable store of value as the world’s most widely adopted cryptocurrency. We believe the proactive management of the balance sheet, coupled with the company’s improving revenue and profitability, are important factors in the recent share price appreciation.”

These companies and funds investing in Bitcoin for the long term could limit the amount of BTC on the market , which would continue to push up Bitcoin’s price over time, assuming that demand for the cryptocurrency increases, which appears to be the case.

The original text comes from bitcoinist and was translated by Blockchain Knight. The English copyright belongs to the original author. Please contact the translator for Chinese reprint.