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Grayscale is a little too calm - What is happening on the Bitcoin (BTC) buying side of Grayscale's institutional investors? While the crypto investment fund firm broke buying records in the first two quarters of 2020, it has been dead calm since early July.
Orgy on a dry diet in a few weeks?
The calm before the storm ? In any case, it is a radical change that has taken place in recent weeks at Grayscale , a provider of cryptocurrency investment products.
Grayscale was nevertheless in a buying frenzy of bitcoins to satisfy the appetite of these institutional investors . After Bitcoin's halving last May, the quantities purchased even represented 155% of miners' BTC output .
However, for over 3 weeks, the source of purchase suddenly dried up . As Cointelegraph rightly points out , Grayscale has not filed a Form 8-K with the Securities and Exchange Commission (SEC) since June 25, 2020 .
Yet these forms declare the acquisition of new bitcoins for the investment firm's Grayscale Bitcoin Trust (GBTC) fund. Grayscale had then declared that day the purchase of 20,000 BTC to the SEC, which is approximately $ 185 million at the current price.
Why such a sudden lull?
Although it may surprise at first glance, this pause in bitcoin buying may have several logical explanations .
The first is quite simply the arrival of the summer season . The months of July and August are a time when business and investment are less intense because of the holidays.
The GBTC fund itself was temporarily closed to subscriptions according to a spokesperson for Grayscale, quoted by Cointelegraph.
An additional reason may be some sort of "pass-through" of the calm on Bitcoin's price to investors.
During the first five months of 2020, Bitcoin has played a roller coaster in its quotation against the US dollar:
- A nice rise from $ 7,000 per BTC in early January to over $ 10,000 in early March , just before reaching a peak of fear linked to the Coronavirus;
- A dantesque drop in prices, below $ 5,000 , on the famous Black Thursday of March 12, 2020;
- A resurgence of madness since this crash, which brought Bitcoin to the (for the moment insurmountable) barrier of $ 10,000 in early May.
Nothing since. An endless range between $ 9,000 and $ 10,000. Enough to make any investor yawn in boredom, whether institutional or not.
Will Grayscale's crypto fund investment run out for long? Perhaps a few more weeks, the time to arrive at the end of August and a return that promises to be explosive. But a premature and unforeseen explosion could just as easily take place by then.
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