One more big deposit in BTC revealing institutional investors active status

- Advertisement -
  • Institutional investors are yet actively depositing large funds in Bitcoin
  • More than 12,000 BTC has been deposited twice this week from Coinbase Pro
  • It seems like Coinbase creates new wallets every time for its customer after the OTC trade
  • The increasing institutional demand in cryptos have affected the supply of such currencies

Recently it is observed that several firms and institutional investors are still purchasing Bitcoin (BTC). Coinbase Pro, the largest crypto exchange platform of the United States, has confirmed more than 12,000 BTC twice this week. This month after hitting a record high, Bitcoin has again achieved a new record high after crossing the price level of $26,000. However, observing the current price movement of Bitcoin, it seems like those investments have only somewhat contributed to the rally.

Coinbase seems to create cold wallets for each customer

Ki-Young Ju, the chief executive officer of CryptoQuant, a blockchain analytics firm, revealed via a tweet, that the institutional investments in Bitcoin are yet active. Ju revealed the case study of large investors while he reported the second deposit. According to Ju, the event was seen as a positive factor in the crypto market. On the other hand, Ju also noted that from one recent investment’s 12,006 BTC has been transferred to a wallet that looked like custody. However, pointing to the issue, he also mentioned that Coinbase might create a new cold wallet for each customer after the Over-The-Counter deal. 

Increasing institutional demand for BTC have impacts on supply

- Advertisement -

It is observed that the current soaring demand for Bitcoin as an inflation hedge, has pointed out the impact on its supply volume. According to Rafael Schultze-Kraft the chief technology officer of Glassnode, a blockchain data analytics firm, this week, Grayscale Bitcoin Investment Trust (GBTC) a major crypto fund of the United States, has significantly exceeded the number of new mining over the last six months. 

It is known that Grayscale’s total assets under management have reached more than $16 billion. Among the total assets under management, it is found that the Bitcoin fund has the largest amount of assets under management. However, over the last seven days, more 28,410 BTC has been deposited in the fund.

Bitcoin’s addition of institutions portfolio

One of the main reasons behind Bitcoin’s surge of this year is the asset’s addition in the company’s portfolio. As institutions like MicroStrategy and MassMutual are making large purchases, and due to the pandemic, the central banks have continued to supply cash in bulk, the demand for BTC has boomed. However, mainly such institutions are using Bitcoin’s as a means of hedging inflation.

- Advertisement -

Join The Coin Republic’s Telegram Channel for more information related to CRYPTOCURRENCY NEWS and predication.

How useful was this post?

Click on a thumb to rate it!

- Advertisement -

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Download our App for getting faster updates at your fingertips.

Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

We Recommend

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners