Covering the steepening of cumulative flow trajectory in Grayscale Bitcoin Trust in recent weeks, JPMorgan yet again shared a bullish view on Bitcoin.
According to the largest investment bank, Bitcoin’s corporate endorsements, such as PayPal, have “propagated further demand” for the digital asset.
This can be particularly seen in the ascending of GBTC, which as per JPMorgan suggests that the demand for the leading digital currency is “not only driven by the younger cohorts of retail investors,” the millennials but also institutional investors that includes family offices and asset managers.
Institutional investors are actually the biggest investors in Grayscale’s products.
Grayscale Bitcoin Trust’s October flow trajectory was rather impressive because of the modest outflows seen in the flow trajectory of gold ETFs in comparison. JPMorgan wrote in its latest report,
“This contrast lends support to the idea that some investors that previously invested in gold ETFs such as family offices, maybe looking at bitcoin as an alternative to gold.”
In its last report, the bank noted that because of its competition with gold as an alternative currency, Bitcoin’s potential long-term upside is considerable, as much as 10x from the current level to match the total private actor investment in the precious metal.
Meanwhile, the current rally has BTC near its “overbought levels,” which means a sell-off could be seen soon, noted the analysts.
Grayscale actually added $500 million in new assets under management in a single day that brought its total AUM at over $9 billion. As we reported, Q3 has been yet another record quarter for Grayscale with $1 billion in inflows.
Last week has been another explosive week for the company, as shared by its Managing Director, Michael Sonnenshein.
What an INCREDIBLE *week* at @Grayscale…
(i) LARGEST asset raise across products EVER ➡️ $237mm+
(ii) LARGEST asset raise EVER for $ETH Trust ➡️ $58mm+
(iii) YTD inflows quickly approaching $3,000,000,000
(iv) AUM has now surpassed $9.1B
…and we’re *just* getting started!
— Michael Sonnenshein (@Sonnenshein) November 6, 2020
The world is choosing Bitcoin as a safe haven over other asset classes at a fast pace, which only puts further pressure on the supply side.
With Grayscale having record inflows, Square selling about double the number of Bitcoins that are being mined, and PayPal, which is 3x of Square and has “eager” customers, also joining in, things are going to get even more interesting.