Digital assets management giant Grayscale has added 16,244 Bitcoin, worth more than $600 million, to its Bitcoin Trust, based on CryptoQuant data. Michael Sonnehnshein, the newly appointed CEO, has announced that the firm gathered $700 million on January 15.
“Grayscale raised north of $700 million into its family of products…momentum from Q4 seems to pick up speed into the new year.”
Grayscale offers a cost-effective means of getting crypto exposure without actually acquiring the asset. This strategy withdraws the challenges of buying, storing, and safekeeping digital assets directly. According to market reports, Grayscale’s Bitcoin trust has amassed a large number of funds, maintaining more than 632,000 BTC, which draws more than 70% of the total BTC possessed by publicly traded firms.
JPMorgan Strategists Stated Grayscale Could Influence Bitcoin Price Rallies
Analysts at JPMorgan Chase believe that the Grayscale Bitcoin Trust might be the main catalyst behind the short term price rally of Bitcoin. The analysts said, “the flow into the Grayscale Bitcoin Trust would likely need to sustain its US$100 million per day pace over the coming days and weeks for such a breakout to occur.”
If Bitcoin collapses below the $40,000 mark, traders “could propagate the past week’s correction,” and “momentum signals will naturally decay from here up till the end of March,” experts added.
Bitcoin’s price has surged abruptly after smashing the $20,000 barrier. According to data from CoinMarketCap, it is currently trading at $37,450.