Who is All in Bitcoin?

Bitcoin has once again reached the important mark of $12,000.

In the past few months, Bitcoin has hit a new high for more than a year, the market's pursuit of the concept of DeFi, and the wealth effect generated by the decentralized exchange Uniswap have exceeded the expectations of the "classical currency circle".

From institutions to individual investors, who is entering the market? Who is All in? What has been going on these past few months? Blocklike learned from a number of institutions that there are many positive phenomena indicating that the long-awaited "new increment" in the industry is entering the market.

Grayscale is a "bright card".

Last week, Grayscale began to promote by placing advertisements across the United States, allowing more people to focus on investing in digital currencies such as Bitcoin and Ethereum. In the 30-second advertisements released by CNBC, MSNBC, FOX and other platforms, Grayscale’s advertising video shows the evolution of currency for thousands of years, from shells, metals, to today’s legal tender, the video tells the audience "It's the era of digital currency," he said.

Twitter may be relisted in 2026 after being privatized by Musk: According to news on October 6, MKM Partners believes that if Musk completes the transaction of acquiring Twitter (TWTR.N) for US$44 billion, Twitter may become A private company returns to the public market in 2026 after a while. Musk has said he will take the company public after reorganizing Twitter, saying he wants to turn Twitter into a super app. Musk has been rounding up co-investors, including private equity firms, to restructure the companies out of the spotlight and then take them public again in five years or so. Rohit Kulkarni, managing partner of MKM, expects another IPO of Twitter could reach $100 billion. (Golden Ten)[2022/10/6 18:41:03]

Previously, there was no shortage of advertisements such as "blockchain technology", but there were not many advertisements directly targeting Bitcoin. According to official data, Grayscale raised a record 1.5 billion yuan in weekly funds after the ad was launched for a week.

StarkWare: StarkEx V4.5 has been pointed out to have a vulnerability, which has been fixed: On September 9th, the zero-knowledge proof research and development organization StarkWare tweeted that its expansion engine StarkEx V4.5 was pointed out by Vlad Bochok (Matter Labs engineer) and Ihor Barenblat Vulnerabilities exist that, under conditions controlled by the operator, could allow users to double spend from a Vault that freezes the system. However, the vulnerability has been fixed now. [2022/9/9 13:19:00]

As a world-renowned digital currency asset management company, Grayscale manages the funds of individual and institutional investors and participates through "off-market funds". According to the data released by the media, as of August 14, the total asset management scale of Grayscale reached 5.9 billion US dollars. And only 3 days later, on August 17, this data has become 61 US dollars.

From the following picture, you can see the grayscale "buy, buy, buy" more clearly:

Grayscale Bitcoin Trust has a negative premium of 33.71%, a record low: According to Coinglass data, the negative premium of Grayscale Bitcoin Trust has reached a record low of 33.71%. The negative premium of Ethereum Trust is 34.01%, the negative premium of ETC Trust is 47.73%, the negative premium of LTC Trust is 37.5%, and the negative premium of BCH Trust is 8%. [2022/6/17 4:35:02]

This massive buying started around March today. We can see that Grayscale continued to buy when Bitcoin continued to rise in the past month.

According to Grayscale's filing with the US SEC (Securities and Exchange Commission), this change is more clearly recorded. In the second quarter of 2020, Grayscale issued more than 87 million shares, while the total issuance for the whole year of 2020 was 1.33 billion shares. The trust issued nearly 90% more shares in the second quarter of 2020 compared to the first quarter. Compared with only 23 million shares issued in the first half of 2019, it has increased by more than 6 times. In the second quarter of 2020, Grayscale's net worth increased by $1.6 billion to a total of $3.5 billion. About half of that growth came from the appreciation of bitcoin held by trust companies.

RAHO will create an Oracle-based NFT competitive game on the Solana chain: According to official news, Radio-Hero is currently on Pinksale and will soon be launched on the Solana chain on RAHO. Radio-Hero includes Radio-Hero games, Metadata NFT and The Radio-Hero Metaverse corresponds to branches of different future developments. RAHO uses the DAO governance economic model to realize the integration of GameFi+DAO. [2022/1/11 8:41:30]

"Actually, it is not Grayscale who buys, buys and buys, but those retail investors and institutions who trust him, and use his trust product channel to invest in cryptocurrencies. Although it is not a dealer, but the party most motivated to promote cryptocurrencies, if only arbitrage Given the demand, the holdings of the Grayscale Bitcoin Fund will not increase so fast.” A cryptocurrency investor from the community analyzed it like this.

At the same time, more institutions dedicated to Bitcoin funds have also seen this opportunity. From a newspaper in August, you can see such an advertisement about Bitcoin:

This week, 51.0342 million DOTs will be unlocked. A total of 2.0689 million DOTs were pledged last week: Golden Finance reported that according to Subscan data, the total number of DOTs released by Polkadot this week (November 8-November 14) was 51.0342 million. The peak of unstaking was on November 11, and a total of 24.6298 million DOTs were unstaked. Last week (November 1-November 7), a total of 2.0689 million DOTs were pledged, and the current DOT pledge rate of the Polkadot network is 58.2%. [2021/11/8 6:37:45]

The ad was posted by Galaxy Bitcoin Funds, a microcosm of many institutions. Numerous "little grayscales" are providing institutional investors with compliant and relatively safe digital currency purchase channels, bringing more admission funds to Bitcoin and other digital currencies.

This trend has also continued to other currencies in the digital currency market.

On August 17, Grayscale announced that its Bitcoin Cash Trust Fund and Litecoin Trust Fund have obtained the DTC (Direct To Consumer) qualification and will be able to sell directly to consumers. Similar to GBTC, the Grayscale Bitcoin Cash Trust will trade on the OTC market under the symbol BCHG, and the Grayscale Litecoin Trust will trade on the OTC market under the LTCN token.

Jiang Zhuoer, the founder of Leibit Mining Pool, commented on this: "BCH and LTC are compliant securitization, and a large amount of US dollars spammed by the Federal Reserve will enter through compliant channels." 

Funds have also poured directly into Bitcoin from other investors.

Last week, Nasdaq-listed MicroStrategy (Nasdaq: MSTR ) disclosed for the first time that it was buying bitcoin to hedge against inflation. According to the disclosure, the company has purchased 21,454 bitcoins, which are currently worth more than $250 million.

Previously, although some companies would also manage idle capital and use part of it to buy bonds, such a large-scale bet on Bitcoin was very rare. You know, for this listed company with a total market value of only US$1.2 billion at the time, the act of investing US$250 million in Bitcoin can indeed be called "All in".

In the process of choosing which asset to hold as a reserve, they firmly chose Bitcoin. What's more interesting is that after the announcement of this news, their stock price soared by more than ten points in a short time.

Some foreign media believe that this news marks a watershed for institutions to absorb Bitcoin. Preston Pysh, a well-known digital currency commentator, analyzed on Twitter: "I proposed 6 months ago that we will now start to see companies add Bitcoin to their balance sheets as a security."

In addition, some hidden "giant whales" also surfaced.

Legendary fund manager and billionaire Paul Tudor Jones recently tweeted: "I bet on Bitcoin as a safe haven against the devaluation of the dollar, but its performance is unbelievable. My only regret is Not buying more. I believe this price increase we're seeing is far from over. In fact, it's just getting started!"

As early as May of this year, Paul Tudor Jones said in an interview with CNBC that he believes that Bitcoin is a good speculation. Buying Bitcoin can hedge against the inflation caused by global central bank money printing, similar to buying gold in the 1970s. Meanwhile, slightly over 1% of its assets are in Bitcoin.

More and more people are aware of the case of incremental funds entering the market.

Blocklike learned from Shi Zhuo, the head of operations of the digital asset management platform BIYA, “Recently, the exchanges we cooperate with basically have a certain increase in deposits and withdrawals, and it feels like there is incremental funds.”

He observed some details: "There are also some wallets that support DeFi and started to cooperate with us. That's right, the previous wallet products were actually not very willing to add fiat currency transactions, especially decentralized ones. Now we are starting to work on this aspect The change is a good sign. It can be seen that Imtoken is now also connected to fiat currency transactions, and has cooperation with Huobi.”

Another senior investor in the industry also told Blocklike: "The heat of the market is very obvious. Such a rise and the heat of speculation cannot be achieved only by the funds in the currency circle in our impression. Now, go out one day Run, there are at least three meetings to attend.”

He also gave an example: "As you can see, the open interest of CME Bitcoin futures is a sharp increase. The open interest reached 800 million US dollars, an increase of 120% from the low position in July. This data shows that Not only is money coming in, but sentiment is running high.”

It can be seen that the new "incremental market" that the entire industry has been looking forward to since the end of 2018 may have quietly arrived. We have reason to believe that Bitcoin and other digital currencies can be more and more accepted by a wider range of people.

Text / Blocklike Lanwen

Tags：

Ethereum