Bitcoin’s Growing Appeal to Institutional Investors: Insights from Ark Invest Report
According to Ark Invest’s Bitcoin Monthly report for June 2023, there has been a significant increase in bitcoin stored on over-the-counter (OTC) trading desks, indicating growing interest from institutional investors. Here are the key points:
1. Rise in Bitcoin Transactions: Within the past year, there has been a 50% increase in bitcoin transactions, signaling a surge in demand from both individual and institutional investors.
2. Institutional Adoption: The increased adoption of bitcoin by institutional investors is seen as a significant step forward for the digital asset.
3. Bitcoin’s Technical Support: Bitcoin received substantial support in June, with strong technical support at the 200-week moving average. This stability made it more appealing to investors.
4. Unmoved Bitcoin Supply: In June, around 70% of the total circulating supply of bitcoin had not been moved for at least a year, reaching an all-time high. This could be attributed to factors like BlackRock’s Bitcoin ETF application and Grayscale’s legal battle with the SEC.
5. Grayscale’s Bitcoin Trust (GBTC): The report also focused on GBTC, which enables institutional investors to access cryptocurrencies. GBTC prices have more than doubled this year, reflecting positive sentiment towards the potential approval of a Bitcoin spot ETF.
In conclusion, the Ark Invest report highlights the growing appeal of bitcoin to institutional investors and the positive trends in bitcoin activity. This suggests a bright future for the digital asset and its potential for further growth.
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