Trend in Crypto / Bitcoin at Grayscale as industry indicator:
P.R. Grayscale Jan 13, 2021
2020 was a hallmark year for Grayscale and digital assets more broadly. Today we’re proud to share the Grayscale 4Q-20 Digital Asset Investment Report that reflects massive adoption of digital assets throughout 2020, along with details specific to the last quarter of the year.
4Q-20 highlights include:
- Grayscale raised $3.2 billion into its investment products, our largest ever quarterly inflow. That brought investment into the Grayscale family of products to over $5.7 billion during 2020, more than four times the $1.2 billion cumulative inflow into the products from 2013-2019.
- Grayscale began the year with $2.0 billion in assets under management and ended 2020 with $20.2 billion. Grayscale® Bitcoin Trust was among the fastest growing investment products of the year, a testament to the enormous demand for Bitcoin as a burgeoning monetary good.
- As in quarters past, the inflows into Grayscale Bitcoin Trust have continued to outpace 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 4Q-20, Bitcoin inflows were approximately 194% of mined Bitcoin.
- Institutional interest in digital assets continues to grow in 4Q-20, institutions accounted for 93% of capital inflows, or $3.0 billion – with over 87% of inflows going to Grayscale Bitcoin Trust.
Link to complete Grayscale story with full investment report for deeper insights and metrics. In addition, the report contains a visual year in review of 2020, alongside Grayscale’s 2021 outlook.
LOTM NOTES:
- Demand for bitcoin Vs Amount Bitcoin created. We are also seeing P.R. that second and third company demand for Bitcoin, exceed mined production. Demand from a second company is PayPal and the third company, is Square’s Coin App.
- LOTM is a continuing believer in Bitcoin. We would buy Bitcoin direct – PayPal or a crypto exchange, or through surrogates – we like Mechanical Technology (MKTY)* $5.40 a reasonably valued small cap, Bitcoin miner / Alt-energy data center “to-be” and MicroStrategy (MSTR)* $631 – a not so reasonably valued owner of over two billion USD of bitcoins. With any of the Bitcoin plays we suggest you commit to buying and owning for a minimum if two years and be prepared to dollar cost average into the position, especially on weakness. This is not for the faint of heart. Be strong if you are going to be long crypto. It will test your will power of ownership.
- It is estimated that less that 0.5 percent of Bitcoin owners , own 80 percent of the bitcoins outstanding. This is very overbalanced towards a tiny group. Should some of all of the 0.5% decide to exit the value of Bitcoin could disappear with the snap of “their’ fingers. Knowledge to keep in your awareness.
RELATED BUT DATED STORY – Referenced Above:
Bitcoin Shortage? Pantera Thinks Market Rally Driven by PayPal Buys. November 22, 2020
Dan Morehead co-founder of Pantera claims that PayPal is already buying almost 70% of the new supply of bitcoins. Together with Square’s Cash App routine bitcoin buying, more than 100% of all newly minted bitcoins is accounted for, Pantera alleges.
Where Value meets Buy Signals!
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* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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