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Institutional crypto investment giant Grayscale now has $ 20 billion under its control as its Bitcoin (BTC) buys production by almost three to one.

As noted by the data analysis source Coin98 Analytics on January 1, Grayscale bought nearly three times more BTC than what was added to the market in December 2020.

It’s official: miners cannot produce enough Bitcoin

Last month, the company added a total of 72,950 BTC ($ 2,132 billion) to its assets under management (AUM). During the same period, miners generated just 28,112 BTC ($ 821.7 million) – 38.5% of Grayscale’s buy-in.

The numbers underscore what many have described as an ongoing liquidity squeeze in Bitcoin, with large buyers sucking up and removing all available inventory from circulation and sending it to cold storage for extended stays.

Such as Cointelegraph reportedthe phenomenon was already visible in November, but in December there was a marked increase in demand from Grayscale and other institutional entities.

BTC mined versus bought by Grayscale in December 2020. Source: Coin98 Analytics / Twitter

Grayscale now manages $ 20 billion worth of crypto

As the clock struck midnight on New Year’s Eve, Grayscale CEO Barry Silbert meanwhile celebrated bringing the company’s total AUM for its various crypto funds to more than $ 20 billion. Just a year ago, the figure was only $ 2 billion.

Grayscale crypto assets under management as of December 31, 2020. Source: Grayscale / Twitter

The company remains the largest institutional player on the bitcoin scene, with its $ 17.475 billion in BTC far ahead of all other market participants. Newcomer MicroStrategy, now not an investment company controls 70,470 BTC ($ 2.06 billion).

Going forward, analysts predict that more demand for the steady supply of “new” bitcoins from miners will only serve to create a bidding war and drive up the price. Sellers faced a stiff determination from buyers as early as December, when new all-time highs did not cause a significant long-term decline.