ARK Invest: “Institutions Holding More Bitcoin Than Ever Before”

  • According to ARK Invest, institutional investors and long-term Bitcoin holders are showing improved bullish trends on several key indicators.
  • Cathie Wood’s ARK company uses OTC markets as an indicator of institutional activity.
  • The report tracking institutional activity also mentions Bitcoin Trust (GBTC), which is one of several firms serving large or accredited investors, operated by Grayscale.

According to ARK Invest’s The Bitcoin Monthly report, institutions are focusing on Bitcoin: OTC Bitcoin balances have reached an all-time high.

ARK Invest’s New Report Provides Details About Institutions

According to ARK Invest, institutional investors and long-term Bitcoin holders are showing improved bullish trends on several key indicators.

According to a “profit report” called The Bitcoin Monthly, OTC Bitcoin balances have reached an all-time high, providing detailed explanations of blockchain activity. There are approximately 8,000 Bitcoins in these markets, and an impressive 60% increase occurred in this quarter.

Cathie Wood’s ARK company uses OTC markets as an indicator of institutional activity, and the reported figures indicate that institutions and other major capital allocators are focusing on Bitcoin, which is interpreted as a bullish sign.

The report tracking institutional activity also mentions Bitcoin Trust (GBTC), which is one of several firms serving large or accredited investors, operated by Grayscale. GBTC shares, which started the year at $8.65, are now trading at $20.

The difference between the price of shares and the net asset value (NAV) of GBTC, referred to as the “Discount,” has fallen to -30%, which according to ARK, could be an optimistic sign for this market.

70% of Circulating Bitcoins Have Been Inactive for a Long Time

Long-term Bitcoin investors are considered a strong signal for the network, and ARK agrees. The report states that nearly 70% of the circulating 19 million BTC have been inactive for over a year, which is the highest level in both relative and absolute terms.

The report also provides 13 metric data for the Bitcoin network, ranging from the percentage of profitable sources to miner difficulty. According to ARK, only two of these metrics (transaction volume and time-weighted return) are evaluated neutrally, while the rest provide bullish signals.

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