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Home Latest News Bitcoin Grayscale Buys 194% More Bitcoin Than Miners Generated

Grayscale Buys 194% More Bitcoin Than Miners Generated

In the last quarter of 2020, US-based major crypto investment firm Grayscale once again said it "experienced unprecedented investor demand"

In last year’s fourth quarter, Grayscale Investments raised $3.3 billion through its cryptocurrency investment vehicles, a record for the digital asset manager and more evidence of the institutional base of this rally.

Disclosed in the latest investment report by Grayscale, the rise more than triples the previous best-ever record set by the firm just a quarter before, when investors totaled just over $1 billion. Grayscale is owned by the Digital Currency Company, the parent firm of CoinDesk. “As we have noted in prior reports, the inflows into Grayscale Bitcoin Trust have continued to grow as a percent of mined bitcoin. This metric is significant because miners are known to be the market’s natural sellers, often using their newly mined bitcoin to pay for operating expenses. In 4Q20, Bitcoin inflows were approximately 194% of mined bitcoin,” they added, clarifying that these comparisons are simply to illustrate supply and demand in the market. Miners are now producing about 900 BTC every day.

The Grayscale Bitcoin Trust, long the company’s most successful product, once again led the Q4 pack with an average of $217 million raised every week. The huge inflow again outpaced the rate of new bitcoin being mined.

Grayscale said that it currently has $20 billion under management; it was just $2 billion in 2020.

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Sourcecoindesk

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