Grayscale sees largest single day inflow of Bitcoin ever

LeoFinance
1 month ago
1 Min Read
281 Words

The liquid supply on Exchanges continues to dwindle thanks to Grayscale

Another day and another major inflow of bitcoin into the Grayscale Trust.

While the inflow doesn't necessarily mean that Grayscale "bought" the bitcoin like some seem to think, it does mean that the liquid supply of bitcoin on exchanges is likely getting smaller.

Once those bitcoin enter the Bitcoin Investment Trust, they simply don't leave.

In the last 24 hours alone, Grayscale added 16,244 bitcoin, which is largest single day addition ever.

Check it out:

image.png

(Source: https://twitter.com/Bloqport/status/1351292780212056069/photo/1)

Those 16,244 bitcoins represent roughly $590 million worth of inflows.

That brings Grayscale's total assets under management to $22.9 billion at current prices.

But wait, there's more...

If this large inflow wasn't enough of a headline, the total amount represented 18x the number of bitcoin that was produced today.

So, while this number doesn't necessarily represent new buys, it does represent a buy at some point.

If this trend continues over time, the price will have to go up.

image.png

(Source: https://twitter.com/doption/status/1351295165978312707/photo/1)

The reason people are transferring their bitcoin into the Bitcoin Investment Trust is to take advantage of the premium that the GBTC shares are trading at currently.

They exchange their bitcoin for shares of GBTC, hold em for 6 months, and then can sell the shares at the market price, which is trading at roughly a 25% to the current net asset value.

For someone looking to hold bitcoin anyways, it's a great way to juice your expected returns.

The more bitcoin Grayscale soaks up, the easier it will be to push the price up when demand comes in.

Stay informed my friends.

-Doc

Posted Using LeoFinance Beta