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October 2, 2022
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Are institutions that haven’t announced Bitcoin purchases still buying?

Bitcoin’s institutional wave keeps growing

With Ethereum trading at a new historical record and PayPal allowing crypto payments to its 26 million merchants worldwide, this year has already been marked by significant events to signal the adoption of Bitcoin and cryptocurrencies.

Bobby Ong, co-founder of the CoinGecko cryptographic data aggregator, recently shared his predictions for 2021. According to him, this will be the year in which institutions will reach cryptocurrencies in style, following the example of the few companies that have already announced considerable Bitcoin stakes in their reserves. In an interview with Alex Fazel, he noted:

“I wouldn’t be surprised if Tesla started buying and keeping it in a treasure”

He went on to say that it is likely that institutions are already buying Bitcoin, but have not yet announced it because they have not completed the purchase of Bitcoin in full. Some signs, such as large purchase orders on weekdays during US time, can be a sign that this is already happening, says Ong.

Source: CoinMetrics

Interestingly, the on-chain data provided by CoinMetrics, such as addresses with more than 1000 BTC, also suggest that institutions are increasingly accumulating the asset.

A leader in digital asset management, Grayscale expressed similar sentiments in a recently released quarterly report, suggesting that in the fourth quarter of 2020, institutions accounted for 93% of capital inflows worth $ 3 billion.

The company noted that Grayscale’s Bitcoin Trust accounted for 87% of all inflows to its product family, the largest proportion since 2017, which Grayscale described as “additional evidence from institutions seeking BTC as a reserve asset” .

The company that has the most significant Bitcoin reserves is undoubtedly MicroStrategy, which recently hosted a Bitcoin conference for corporations, with the goal of providing executives at more than 1400 companies with a plan to incorporate Bitcoin into their balance sheets.

Speaking to CNBC, CEO Michael Saylor said MicroStrategy will publish its playbook with accounting and legal guidance that would be required for some 1,400 companies to incorporate Bitcoin into their balance sheets.

Source: AMBCrypto

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