• Bitcoin (BTC) holding hit a one-year all-time high, with 70% of 19 million BTC in circulation not moving for over a year.
• ARK Invest report revealed that nearly 8,000 BTC is live on over-the-counter (OTC) exchanges, registering an impressive rise of 60% this quarter.
• Grayscale Bitcoin Trust (GBTC)’s discount to net asset value (NAV) hit 30%, the lowest in nearly one year.
Bitcoin Holding Hits One-Year ATH
Bitcoin (BTC) holding hit a one-year all-time high (ATH), with 70% of 19 million BTC in circulation not moving for over a year. This sentiment was revealed in an ARK Invest report titled, The Bitcoin Monthly – The Dawn of the ETF Era?
Increasing Institutional Investment Activity
Nearly 8,000 BTC is live on over-the-counter (OTC) exchanges, registering an impressive rise of 60% this quarter. OTC desks are used as an index to monitor institutional investment activity and suggest that institutions and other large capital allocators are increasingly focused on Bitcoin.
Grayscale Bitcoin Trust Discounts NAV
The Grayscale Bitcoin Trust (GBTC), which caters to large investors, saw its share price fall by 30% lower than the price of its underlying asset – BTC – due to filings from traditional finance companies for spot BTC exchange traded funds. This was the lowest recorded discount in nearly one year.
ETF Filings Lead To Lower Discounts To NAV
Asset management firms such as BlackRock, Fidelity, VanEck, 21Shares and WisdomTree have recently filed applications for spot BTC exchange traded funds with the U.S Securities and Exchange Commission(SEC). This has lead to Grayscale’s GBTC’s discount to net asset value hitting 30%, leading us to believe that institutional investors are becoming more bullish on BTC investments.
With 70% of 19 million Bitcoin [BTC] in circulation not moving for over a year and large capital investors getting increasingly bullish towards it due to spot exchange traded fund applications being filed by traditional finance companies, we can conclude that institutional investors are showing growing interest in investing into cryptocurrency markets such as bitcoin.