How institutional investors decide the best time to purchase bitcoin
Blockstream’s CSO, Samson Mow, thinks that institutional investors decide to buy Bitcoin regardless of its price movements. The Bitcoin maximalist took to Twitter on 5 January to explain that entities seeking to buy the digital asset do not plan to buy BTC at a particular price. Instead, heads of such institutions plan to purchase a certain amount of the popular crypto in US dollars.
According to Samson Mow, financial entities that aim to invest in Bitcoin often buy it for hundreds of millions of US dollars:
On 4 January, Mow compiled a list of institutional investors that are planning to purchase Bitcoin in 2021. According to Samson Mow’s list, which is supposedly based on news articles, entities such as One River, Guggenheim, SkyBridge, Ruffer and MassMutual will buy Bitcoin (and some have already bought BTC). The firms have allocated or intend to allocate amounts ranging from $100 million to $600 million to invest in BTC.
I know you guys aren't really panicking about #Bitcoin, but in case you are…
One River ($1.6B fund) bought $600M & will buy $400M more
Guggenheim ($5.3B fund) will buy $530M
SkyBridge ($9.2B fund) bought $182M
Ruffer ($27B fund) bought $744M
MassMutual ($675B AUM) bought $100M
— Samson Mow (@Excellion) January 4, 2021
To date, Galaxy Digital is said to hold 16,651 BTC and Square about 4,709 BTC. Additionally, Bitcointreausuries projected that over 800,000 Bitcoin or 4% of the total circulating supply is held by public companies.
Moreover, Grayscale Investments announced that its assets under management, such as Bitcoin, Ether and others, are now worth $19 billion in crypto. Recently, even crypto fund manager Bitwise surpassed $500 million in AUM and recorded Q4 inflows into its Bitcoin, Ethereum, and crypto index funds, outpacing previous quarters.
At press time, Bitcoin was trading at $32,020.31 and has been up by 1.1% in the last 24 hours and 18.6% in the past week.