Institutions investors holding more bitcoin than ever before

According to The Bitcoin Monthly, the balance of Bitcoin held on over-the-counter (OTC) desks has reached an all-time peak

Institutional investors and long term Bitcoin holders are displaying signs of enhanced bullishness, reaching highs on a number of vital indicators, according to ARK Invest.

As per a new issue of The Bitcoin Monthly, an “earnings report” that describes on-chain activity, the balance of Bitcoin held on over-the-counter (OTC) desks has reached an all-time peak. Around 8,000 Bitcoin are sitting on these desks, securing an impressive 60 per cent rise this quarter.

Cathie Wood’s ARK uses over-the-counter desks as a proxy for institutional activity, indicating that the numbers reported show institutions and other big capital allocators are centred increasingly on Bitcoin–a bullish indicator, they state.

In our view, increased balances on over-the-counter desks indicate that institutions and other big capital allocators are centred increasingly on Bitcoin, Ark stated in the report.

Keeping on the institutional trail, the `report also deals with Grayscale’s Bitcoin Trust (GBTC), one of the few companies that serves big or accredited investors. It has been on quite the run this year, doubling in value–with its GBTC shares beginning the year at $8.65 now trading at $20.

The so-called GBTC “Discount,” which refers to the difference between the price for the shares and the NAV of GBTC’s holdings–has reduced to -30 per cent, which ARK proposes could be the market’s bullish sign to the recent exchange-traded fund (ETF) filings.

Long-term Bitcoin holders are often considered an indication of strength for the network, a sentiment that ARK said it agrees with. The report observes that around 70 per cent of the 19 million circulating supply of bitcoin has not moved in over a year–an all-time peak in relative as well as absolute terms.

The report also shows 13 metrics for Bitcoin’s network–ranging from profit to miner difficulty. Only two of these metrics (transaction volume and time-weighted turnover) are considered neutral, while the others, says ARK, are bullish.