Bitcoin has had a pretty particular year so far. Whether it’s the momentum it had in January, the big drop in March, or the sideways market it has maintained after the Halving in May, the truth is that it has varied a lot. However, this has not prevented institutions from investing money in this cryptomoney. According to new reports, institutional investment reaches $57.8 million in Bitcoin every week, according to Grayscale.
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Knowing the data of institutional investment in Bitcoin, according to Grayscale
According to a new report from Grayscale, the Grayscale Bitcoin Trust has been seeing massive institutional inflows, averaging $43.8 million per week during the first half of 2020.
Surprisingly, most of these inflows occurred in the second quarter. This is despite the fact that Bitcoin made more notable gains in the first months of 2020 as mentioned above.
This indicates that the printing of global money and lax economic policies are leading investors to bet on alternatives such as BTC. Therefore, we can say that institutional participation in the cryptographic market is growing considerably.
If we want proof of this, we need only recall the headlines that featured the legendary investor Paul Tudor Jones. At the time, Tudor announced that he is investing a significant percentage of his net worth in Bitcoin. He also explained that he believes that BTC will be the biggest beneficiary of the current global inflation.
However, Jones is not the only notable investor who is adding crypto-currencies to his investment portfolio. According to data in Grayscale’s second quarter and semester report, his Bitcoin Revolution Trust product has been seeing massive inflows.
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How much has been invested in these months within BTC Trust?
In the first half of the year, institutions invested a total of $1.4 billion in all of Grayscale’s products, with an average of $43.8 million per week in Bitcoin.
Also, weekly inflows into the product grew in the second quarter of the year, averaging $57.8 million. One possible reason is that while there is a global crisis and recession, there are investors who are looking for tough or diverse assets right now.
The company also noted in its report that the amount of Bitcoin being purchased through its products has exceeded the rate of production of the cryptomone.
After Bitcoin was halved in May, Q2 2020 investment inflows into the Grayscale Bitcoin Trust exceeded the number of Bitcoins mined during the same period.
This has reduced the supply-side pressure on cryptomoney and is an overwhelmingly positive sign for its macro perspective, especially in terms of upward prospects.