According to a note from the bank’s quantitative strategists led by Nikolaos Panigirtzoglou, such a drop in flows into the biggest bitcoin (BTC, -3.41%) fund would enhance the likelihood of a price correction similar to the one seen in the second half of 2019.
According to Coindesk, the strategists said that the digital asset manager’s bitcoin inflows “are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics.”
They stopped short of saying bitcoin is overbought after the cryptocurrency has soared to consecutive record highs in the last few weeks.
The most recent data tweeted by Grayscale Investments showed the company reached $15.5 billion in cryptocurrency assets under management on Dec. 18 – up $2 billion in less than a month. Its Bitcoin Trust is currently worth over $13 billion of that total.
New York-based Grayscale is owned by Digital Currency Group, the parent company of CoinDesk. The firm allows institutional investors to buy shares in its crypto trusts, gaining exposure to the asset class without having to own the asset directly.
