The arrival of institutions in 2020
Institutional investors trade large quantities of crypto, usually bitcoins (BTC). Until now, large investors, or whales, have remained private or at least rather discreet about their operations. This is no longer the case today.
Institutional investors and companies have to Bitcoin Supersplit report their movements, so hiding is not an option. This allows us to take a look at Bitcoin’s most important movements in 2020.
In August, the MicroStrategy business intelligence company burst onto the crypto-money scene. In August and September, the company began buying large volumes of Bitcoin. MicroStrategy’s CEO, Michael Saylor, replaced $50 million of its cash reserves with BTCs.
Saylor’s reason was as obvious as his buying frenzy. He claimed that the stimulus spending due to VIDOC-19 in the US had devalued the currency, and that Bitcoin was a safe investment against this problem.
In addition, on October 28 Saylor revealed that he personally owned 17,730 BTCs.
Paul Tudor Jones
In May, legendary hedge fund manager Paul Tudor Jones told CNBC that he held between 1% and 2% of his $5.8 billion in Bitcoin. Although his purchases have not been made public, his enthusiastic comments about BTC are common knowledge.
On October 22, he said on CNBC that he liked Bitcoin more at that time than he did last March when news of his investment in the crypto-money was announced.
At the head of the class, or, since they are whales, at the head of the group, is Grayscale. Bitcoin’s biggest buyer has turned the market upside down by buying more BTCs in November than it was created.
The Grayscale Bitcoin Fund’s participation is so large that even investors who subscribe to it are making headlines. In November, Guggenheim Funds filed an application with the Securities and Exchange Commission (SEC) for a $500 million investment in Grayscale Bitcoin Fund.
In October, BeInCrypto wrote: „if you are wondering what caused the change in feeling about the course of Bitcoin, you should thank Jack Dorsey“. Jack Dorsey is the CEO of Square, which occupies an unusual place in the Bitcoin universe.
Square was created for small business payments. Along the way, the company started buying Bitcoin for its users to buy in turn. The concept took off and by the second quarter of 2020, the company had achieved $875 million in BTC revenues.