ARK report: Institutional and large-capital users are increasingly interested in investing in Bitcoin

Author: James Hunt, THE BLOCK; Compiler: Songxue, Jinse Finance

Bitcoin supply that has not moved for at least a year reached an all-time high in June — about 70% of the circulating supply.

Bitcoin price action, GBTC discounts, and institutional interest in Bitcoin at OTC desks also strengthened last month despite recession fears.

In its latest Bitcoin report for June, asset manager Ark Invest highlighted growing support from strong holders and improving institutional sentiment towards the leading cryptocurrency.

According to Ark's analysis, nearly 70% of Bitcoin's circulating supply has not moved for at least a year, indicating a growing holder base and growing confidence among long-term Bitcoin investors, Ark said. **

Bitcoin long-term holder supply. Image source: Ark Investment.

In June, bitcoin closed at $30,460, up 11.9% for the month. The cryptocurrency found strong technical support at its 200-week moving average, closing the month 14 percent above that average, Ark reported.

Bitcoin 200-week moving average and short-term holder cost basis. Image source: Ark Investment.

Improve Institutional Sentiment

Since BlackRock filed for its spot Bitcoin ETF on June 15, the Grayscale Bitcoin Trust (GBTC) has traded at a net asset value (NAV) discount (i.e., the market price of each share is less than the value of Bitcoin it represents). ) from 42% to 30%—a one-year low. According to Ark’s report, the narrowing discount may indicate market expectations for the approval of the Bitcoin spot ETF, thereby increasing the possibility of GBTC being converted into an ETF.

! [TGNZA4ZZICUDBOZKW6BG3TXX8ZUH6UIP0BOTTLH8.png] (https://img-cdn.gateio.im/resized-social/moments-40baef27DD-DD1A6F-76F-7 649e1 "7060822") Daily GBTC premium/discount to net asset net value

Last week, Ark said: **BlackRock’s ETF filing could be a “tipping point” for Bitcoin. ** Days later, CBOE amended Ark’s Bitcoin ETF filing to include a BlackRock-like monitoring sharing agreement to prevent fraud and market manipulation. Ark also said it was the first to join a new round of bitcoin spot ETF competition, which also includes Invesco, Valkyrie and Fidelity, according to Bloomberg. , which the company originally submitted in April.

Meanwhile, bitcoin balances held in ** over-the-counter (OTC) desks, which act as a proxy for institutional activity, hit a one-year high in June, with over-the-counter bitcoin balances up 60% by the end of the quarter. Ark stated that this growth shows that institutions and large capital allocators are increasingly focusing on Bitcoin as an investment option. **

Stablecoin Trends

The report also highlights the trend divergence between USDC and Tether. Year-to-date, USDC’s supply has decreased by 37%, while Tether’s supply has increased by 25% and reached an all-time high in June. Ark said the difference could be attributed to uncertainty in the U.S. regulatory environment, which has driven some cryptocurrency activity offshore. USDC was briefly depegged in March after issuer Circle disclosed it held $3.3 billion in USDC reserves at the collapsed Silicon Valley Bank.

**Despite the positive signs for Bitcoin, Ark's report warned of economic challenges ahead, with manufacturing data showing a drop in new orders in the Purchasing Managers Index. Additionally, Ark said U.S. Gross Domestic Income (GDI) is contracting sequentially, implying a possible recession. **