Bitcoin’s Institutional Surge As OTC Desks See Record Highs
A monthly report by ARK Invest reveals the growing optimism and activity of institutional investors and long-term holders of Bitcoin.
Institutional investors and long-term holders of Bitcoin are showing an increase in optimism, as the amount of Bitcoin held on over-the-counter (OTC) trading desks reaches an all-time high.
As stated in the monthly “earnings report” released by ARK Invest, close to 8,000 Bitcoins are being held on these desks, representing a 60% increase in this quarter alone. According to Cathie Wood’s ARK Invest, which uses OTC desks as a representation of institutional activity, these figures suggest that institutions and other large capital allocators are becoming increasingly interested in Bitcoin.
The report also notes that a record high of almost 70% of the 19 million BTC in circulation has remained unchanged for over a year.
Furthermore, the report presents 13 metrics for the Bitcoin network, with 12 being bullish and only 2 being neutral. The value of Grayscale’s Bitcoin Trust has doubled this year; its GBTC shares were trading at $8.65 at the start of the year and are now worth $20.
ARK Invest has recently re-submitted an application for a spot Bitcoin ETF alongside 21Shares and is considered to be leading the race for a Bitcoin ETF, ahead of other asset managers such as BlackRock.