Grayscale’s Exec Thinks Bitcoin Rally is Just Getting Started

Grayscale Investment, an institutional-grade digital assets investment platform, has been on the upside with its assets under management (AUM). To be precise, the company has been purchasing a massive number of Bitcoin (BTC), more than miners could mine in one week. Following the increasing inflows in Grayscale, the managing director, Michael Sonnenshein, opined that such development indicates that Bitcoin is still going to do more, as the rally is just getting started.

Bitcoin Rally Isn’t Over

While speaking at CNBC’s Squawk Box on Monday, the Grayscale executive admitted that the company has been recording a huge growth in its crypto investments products. The institutional investment company provides investors exposure to cryptocurrencies via its Trust Funds, which covers Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, and five other crypto products. 

When asked about the records with these products, Sonnenshein said that all the ten crypto investment vehicles are gaining huge inflows. According to Sonnenshein, the rally with the leading cryptocurrency is just getting started, if the massive capital inflows in the company indicate the current investors accumulating Bitcoin.

Grayscale Bitcoin Purchase

One evidence for the increasing capital inflows in Grayscale stands to be the Bitcoin purchases in recent weeks. The company accumulates more than miners can sell in a single week. For instance, Grayscale reportedly purchased more than 7,300 Bitcoin in the past week alone. Following Bitcoin’s price (US$19,362) at the time of writing, the latest weekly purchase is worth over US$141 million. Bitcoin miners are no longer meeting the demand in the market.

For every new block, miners received 6.25 BTC. Bitcoin miners only produce about 144 blocks daily on average. This means that, for every new week, about 6,300 new Bitcoin are added to the current circulating supply. When comparing the supply rate for Bitcoin with the current trends, it clear that there is a high demand for the cryptocurrency. This is probably one factor behind the rising price of Bitcoin, as the value of an asset is more likely to surge when the demand is greater than it sells.