Bitcoin Holdings Through Over-The-Counter Transactions Hit Record High

On Jul 7, 2023

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Bitcoin holdings carried out through over-the-counter transactions have reached an all-time high of nearly 8,000 BTC.

Ark Invest Reports Record-Breaking Bitcoin Held By Institutions

In a remarkable shift in the financial landscape, Bitcoin, the world’s largest cryptocurrency, has witnessed a significant increase in institutional adoption.

Ark Invest, a renowned asset management firm, released a report in June indicating that Bitcoin adoption in the institutional cycles is becoming even more prominent.

The latest edition of The Bitcoin Monthly report by ARK Invest noted that Bitcoin stored on over-the-counter (OTC) trading desks has reached levels not observed in approximately one year.

The amount of Bitcoin on OTC platforms had grown by 60% compared to the previous period, with approximately 8,000 Bitcoin currently held on these platforms.

According to the ARK report, the increased BTC balances on OTC desks indicate a growing interest in Bitcoin among institutions and other major capital allocators.

Furthermore, nearly 70% of the total 19.4 million Bitcoins in circulation have remained dormant for at least a year, affirming a strengthening base of long-term holders.

Meanwhile, Bitcoin received significant support from its 200-week moving average ($26,200) and its short-term-holder cost basis ($27,465), serving as crucial factors in June.

This indicates that the quantity of Bitcoins held for a year or more has achieved a record high in absolute and relative terms.

The report also shifted its sight to Grayscale’s Bitcoin Trust (GBTC) – a fellow asset management firm that provides crypto access to institutional investors.

GBTC, the main offering from Grayscale, allows investors to engage in share trading within trusts that contain collections of Bitcoin.

Each share is designed to mirror the present value of Bitcoin, allowing investors to gain exposure to the asset without the need to directly purchase or hold it.

Grayscale’s Bitcoin Trust (GBTC) has witnessed a remarkable increase in value this year, doubling its initial worth.

Starting the year at $8.65 per share, GBTC shares have soared to $20. The premium on GBTC indicates a positive shift in sentiment towards a Bitcoin spot ETF.

Furthermore, the discount to net asset value (NAV) of the Grayscale Bitcoin Trust (GBTC) has reduced from -42% to -30%, according to ARK Invest’s report.

The Cathie Wood-led firm says this could be due to the growing positive sentiment surrounding BlackRock’s filing for its Bitcoin ETF and Grayscale’s interest in switching its GBTC service to a spot ETF.

Another aspect of the report that is highlighted is the robustness of Bitcoin’s holder base and network activity.

Various metrics, including mining difficulty and miner revenue, were examined, with 11 displaying positive trends.

However, only two metrics, transaction volume, and time-weighted turnover, remained neutral.

ARK Invest Leads as Frontrunner for Bitcoin ETF Filing Approval

In recent news, ARK Invest and 21Shares have refiled for a Bitcoin exchange-traded fund (ETF) application.

Ark Invest Refiles Application for Bitcoin Spot ETF Alongside 21 Shares May 27, 2022 at 08:00AM
Ark Investment Management, the investment company tagged with Cathie Wood is taking another dig at a spot Bitcoin Exchange Traded Fund (ETF) product. (Read More) Drop your #NFTs,…
— MIZO CRYPTO MOON (@MIZOMOONSHIBA) May 27, 2022

ARK Invest initially sought approval for a Bitcoin exchange-traded fund (ETF) alongside 21Shares in June 2021.

However, the U.S. Securities and Exchange Commission (SEC) rejected their request earlier this year.

In light of this, ARK Invest has changed its recent SEC filing by including a surveillance-sharing agreement (SSA).

Cathie Wood’s Ark Invest amended its Spot Bitcoin $BTC ETF application to include a surveillance-sharing agreement with language that is in line with BlackRock’s filing pic.twitter.com/FSuyRMRk5P
— Barchart (@Barchart) June 29, 2023