2021-2-12 20:27 |
The crypto market is still buzzing off Tesla’s $1.5 billion bets on Bitcoin as the company designated 7.7% of its cash reserves to purchase Bitcoin (BTC) last month. In an interview with CNBC’s Squawk Box on Wednesday, Grayscale CEO, Michael Sonenshein, said this latest trend of institutions such as Tesla, Square, PayPal, and Twitter adding Bitcoin to their operations and balance sheets is set to boost across 2021.
Notably, companies prepare themselves to add Bitcoin to their reserves this year as the sentiment around the digital asset switches, Sonnenshein said. In particular, Michael Saylor, Jack Dorsey, and Elon Musk have started a Bitcoin movement that is spreading across institutions like wildfire, he added,
“I wouldn’t be surprised to see there being almost some sort of a race now — you have Elon Musk, you have Michael Saylor, Jack Dorsey.”
“You’re gonna see a lot of other visionary leaders in disruptive companies actually realizing that it’s really moved from ‘why’ to ‘why not,’ and see which companies are next to get involved in having Bitcoin as part of their treasury program.”
Institutional demand for BTC is not only increasing, but it is doing so at an accelerating pace, according to Sonnenshein. The inflows on Grayscale so far in 2021 are outpacing last year’s inflow, which could be a key indicator that the demand for Bitcoin is accelerating. He said,
“I’m very pleased to say and encouraged that that momentum is not only continuing this year but is actually accelerating.”
“So we’re seeing very, very sustained and growing demand from a lot of institutional players at the moment.”
One of the reasons that institutions are flocking into Bitcoin is “regulatory concerns,” Sonnenshein explained. Those tasked with company treasuries are increasingly finding ways to invest in digital assets legally, and the “no-regulation” narrative is slowly fading.
Secondly, companies are also focusing on the size of their reserves and timing. MicroStrategy made several buys across 2020 totaling $1.3 billion, while Tesla made a one-off payment. According to the Grayscale CEO, institutions are more likely to move to buy in intervals than a one-off buy. He explained,
“I think the second piece of the conversation is around sizing and timing.”
“[Institutions] they recognize that they don’t need to get invested all at once.”
The post Institutional Demand in Bitcoin is Increasing at an ‘Accelerating Pace’ in 2021: Grayscale CEO first appeared on BitcoinExchangeGuide. origin »Bitcoin price in Telegram @btc_price_every_hour
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