Bitcoin funds continue to add more Bitcoins in huge numbers as the BTC price approaches $19,000 on Friday, November 20. Over the last week, three of the top four Bitcoin funds have accumulated nearly 25,000 Bitcoins.
3 Bitcoin funds bought up 24,337 BTC this week.
There are only 21 million, and they’re going fast. pic.twitter.com/jsP0sU4CF1
— Kevin Rooke (@kerooke) November 21, 2020
As expected, the Grayscale Bitcoin Trust (GBTC) remains the largest accumulator while squeezing an additional 20,000+ BTC after it crossed the half-million mark. The GBTC is approaching pretty fast to hit another milestone of $10 billion worth of assets under management (AUM).
The 3iQ Bitcoin Fund has been the second-largest accumulator last week followed by the ETC Group. But fund houses are not alone in accumulating more Bitcoins. As Kevin Rooke reports, other private and public listed companies and individual investors have been pouring massive amounts of cash in BTC.
Big Players Looking to Launch Their Own Bitcoin Fund
Besides, more and more hedge funds are willing to launch their Bitcoin Funds in the market. In another major news, Morgan Creek Digital applied for a ‘Risk Managed Bitcoin fund’ with the U.S. SEC, in partnership with Exos.
Another day, another Bitcoin fund filing.
— Kevin Rooke (@kerooke) November 20, 2020
Rooke notes that this Bitcoin Fund will handle all technical details related to “trade, transfer, and custody of Bitcoin”. Besides, instead of dealing directly with the volatile asset class, Exos added that the fund will help institutional players to mitigate volatility. It notes:
“The Fund will fully allocate capital to bitcoin when its indicators are positive and reduce or exit its position when its indicators turn negative.”
Earlier this week, Mike Novogratz’s merchant bank Galaxy Digital announced the launch of a new Bitcoin fund in partnership with Canadian financial giant CI Global Asset Management. The CI Galaxy Bitcoin fund is a closed-ended fund targeting institutional players. The official press release states:
“The Fund will invest directly in bitcoin with the Fund’s holdings of bitcoin priced using the Bloomberg Galaxy Bitcoin Index (the “BTC”), which is designed to measure the performance of a single bitcoin traded in U.S. dollars. The BTC is owned and administered by Bloomberg Index Services Ltd”.
At press time, BTC is trading at $18,593 with a market cap of $345 billion. On Friday, Bitcoin hit its new 2020-high of 18,934 with its market cap surpassing over $350 billion. Bitcoin is back to challenging big giants like JPMorgan, Mastercard, PayPal, and Visa.
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