GrayScale Breaks Records, Buys $600 Million Bitcoin

GrayScale has bought 16,420 bitcoin this Monday, worth $600 million. Making it the biggest one day purchase by far.

The biggest stock trading bitcoin provider has now bought about $1 billion worth of bitcoin over the past week, considerably higher than the $100 million a week in November and $500 million weekly in December.

“Momentum from Q4 seems to picking up speed into the new year,” Michael Sonnenshein, GrayScale’s CEO, said.

They now hold 632,800 bitcoin, worth $24 billion, making GBTC the biggest stockenized bitcoin product by a significant margin.

These purchases appear to have not quite reflected on bitcoin’s price as of now, with it trading at $37,000.

That may be because they’re bought Over the Counter (OTC) in blocks, rather than on price setting exchanges.

OTC purchases tend to have at least a week’s delay and sometime a month as supply and demand pressures make their way.

The price sold OTC for example would have been sold on exchanges, so taking sell pressure out.

In addition, OTC prices go at a premium. Instead of giving a discount for buying 10,000 bitcoin as wholesale, they start asking for a higher price, arguing that buy slippage on exchanges would have been higher so it is still a discount.

Eventually they have to effectively buy on exchanges, with what’s gone on behind the scenes so finally reflecting.

Suggesting this is perhaps a leading indicator, but how these record breaking daily purchases by GrayScale will reflect on global prices remains to be seen.