In its latest <a href="https://www.bloomberg.com/news/articles/2020-11-30/jpmorgan-says-quant-fueled-bitcoin-drop-may-have-further-to-go" target="_blank" rel="nofollow noopener">report</a> on Bitcoin’s performance, JPMorgan analysts led by Nikolaos Panigirtzoglou explored the reasons for Bitcoin's massive price high. He comes to the conclusion that investors are putting enough funds into Grayscale Bitcoin Trust for the cryptocurrency to sustain its current all-time highs. The analysts also warned that if institutions reduce their Bitcoin purchase, the price of Bitcoin could lead to a massive price correction.
<h2>Grayscale’s Crypto Fund Key for Bitcoin’s Success: JPMorgan</h2>
<a href="https://www.cryptoknowmics.com/news/grayscale-bitcoin-trust-holds-more-than-500k-bitcoin/">Grayscale’s assets under management</a> (AUM) started out with about $2 billion. Over the year the firm’s AUM grew by over $15 billion. Experts say that the Grayscale Bitcoin Trust is partly responsible for the majority of the funds with over $13 billion.

Consequently, the analysts stated that these flows into the BTC Trust. According to him, a decrease in fund inflows to Grayscale might bring a large-scale price correction in a similar pattern that was last seen in the second half of 2019.

In June 2019, Bitcoin started to grow downwards to 44 percent to $7,158 at the end of the year after reaching a price peak. On Dec. 21, 2020, Bitcoin’s price managed to cross the next resistance level at $24,000 to reach $24,291.38. As per data from Coinmarketcap, there was a price correction that took the price of the cryptocurrency back to $23,243.
<h2>Grayscale Preferred by Institutional Investors for BTC Investment</h2>
<a href="https://www.cryptoknowmics.com/news/grayscale-claims-one-third-us-investors-are-interested-in-bitcoin/">Grayscale’s Bitcoin Trust</a> is the most preferred company for <a href="https://www.cryptoknowmics.com/news/bitcoin-bulls-profiling-the-standing-of-institutional-investors/">institutional investors</a> to receive exposure to Bitcoin without the need for worrying about secured and safe and fund storage. It is a digital currency investment product where investors can buy and sell via their own brokerage accounts. On January 21, 2020, the firm became an <a href="https://www.cryptoknowmics.com/news/us-sec-approves-grayscale-bitcoin-trust-as-a-reporting-company/">SEC reporting company</a>.

The Grayscale Investment Trust debuted as The <a href="https://www.cryptoknowmics.com/news/grayscale-reports-vast-majority-of-investments-in-q1-2019-were-in-bitcoin-trust/">Bitcoin Investment Trust</a> on Sept. 25, 2013, as a private placement to accredited investors. It, later on, received FINRA approval for eligible shares to trade publicly.

JPMorgan Says Grayscale’s Crypto Fund Key for Bitcoin’s Success

JPMorgan said that investors are putting enough funds into Grayscale Bitcoin Trust for Bitcoin to sustain its current all-time highs.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

JPMorgan Says Grayscale’s Crypto Fund Key for Bitcoin’s Success

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