Crypto mutual funds are growing strongly

Bitcoin fell slightly yesterday, holding the price above $ 32,000. Most of the other coins also follow the Bitcoin trend. This week, the event that is drawing the attention of investors is the large number of GBTC shares that unlocked on July 17th, equivalent to more than 16,000 BTC. Hence, the crypto market will have a lot of information about this event this week.

Only GBTC stakes will be activated during this event, not BTC. However, this information still worries many people. From mid-February 2021 until today, Grayscale has bought almost no more BTC.

Also, the number of BTC this company has been dropping slightly month on month. According to the forecast, 30-100 BTC will be lost every day. Many people assume that Grayscale is selling BTC. However, the amount of this drop in BTC is very small compared to the total BTC held, so this is not a sell action that is pushing the price down.

While the price is flat and the market bleak, behind the scenes big companies and institutions are still buying BTC. Like a mutual fund with big coins Grayscale Digital Large Cap Fund has grown by 306.95% in the past 12 months. Even though BTC grew to $ 65,000 and then fell to over $ 30,000, crypto mutual funds are still seeing impressive growth.

This mutual fund currently manages $ 352.5 million in crypto assets including Bitcoin, Ethereum, Cardano, Litecoin, Bitcoin Cash, Chainlink. While no disclosure is required, Grayscale has chosen to regularly report mutual fund performance to the SEC. This action by Grayscale is intended to confirm the transparency and legal compliance of this company and to help attract customers. This is also a stepping stone for Grayscale to convert to a Bitcoin ETF later.

Next up, investment firm Fidelity also saw a breakthrough in crypto investing last year. Recently, this company had to hire 70% more people in the crypto investment segment to manage its operations.

In an interview with Bloomberg, Tom Jessop, President of Fidelity for Digital Assets, said the past year was a big breakthrough in terms of BTC’s appeal to investors. Not only BTC, but also investors pay a lot of attention to Ethereum. Recently, ETH was quickly withdrawn from the stock exchange. It also attracts investors through the Defi, NFT and especially Ethereum 2.0 application platforms.

On-chain analysis

Although ETH staking is blocked for a long time until the completion of ETH 2.0, ETH staking is still attracting a large amount of deposits and continues to grow.

To date, the number of ETH participating in staking accounts for 5.37% of the total amount of ETH, which equates to 6.26 million blocked ETH. The number of wallets with large ETH amounts is generally increasing.

At BTC, the number of BTC on the stock exchanges has been on the downside since mid-June. The BTC amount withdrawn from the exchange is greater than the amount deposited.

The Funding Rate indicator is now negative, showing that the market does not have many short orders on the exchanges.

After China banned miners, we see a small sales force of miners. Thereafter, this selling pressure gradually subsided and returned to a very low level. And the miners have been almost very low since March until now.

The number of wallet addresses with 100 BTC or more has been on a slight upward trend recently. We don’t see any signs that whales are losing their stocks, but on the contrary, they are taking advantage of the low prices to accumulate both BTC and ETH.

In the long term, the price of BTC has continued to rise sharply over the years. Short-term price declines or sideways movements therefore become very short periods of time in the long term. With a long-term investment, Thuan continues to accumulate at a good price on the long-term development path of BTC as well as crypto in general.