Bitcoin Holdings on OTC Platforms Reach All-Time High
The latest report from Ark Invest reveals that Bitcoin holdings on over-the-counter (OTC) trading desks have reached a record high of nearly 8,000 BTC. This increase in institutional adoption of Bitcoin indicates a growing interest among major capital allocators.
Main Breakdowns:
- Bitcoin stored on OTC trading desks has grown by 60% compared to the previous period.
- Nearly 70% of the total 19.4 million Bitcoins in circulation have remained dormant for at least a year.
- Bitcoin’s 200-week moving average and short-term-holder cost basis have provided crucial support in June.
- Grayscale’s Bitcoin Trust (GBTC) has seen a significant increase in value, doubling its initial worth.
- The discount to net asset value (NAV) of GBTC has reduced from -42% to -30%.
Bitcoin ETF Filing and Market Manipulation Prevention
ARK Invest and 21Shares have refiled for a Bitcoin exchange-traded fund (ETF) application after a previous rejection by the SEC. In their amended filing, ARK Invest included a surveillance-sharing agreement (SSA) to prevent potential market manipulation. This move could potentially give ARK an advantage in receiving approval before other applicants.
Hot Take
The increasing Bitcoin holdings on OTC platforms and the growth of institutional adoption indicate a strong interest in Bitcoin among major capital allocators. The rise in value of Grayscale’s Bitcoin Trust and the reduced discount to net asset value further support this positive sentiment. With the refiling of the Bitcoin ETF application and the inclusion of a surveillance-sharing agreement, ARK Invest positions itself as a frontrunner for approval.
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