In a recent report by ARK Invest, institutional investors, and long-term Bitcoin holders are showing signs of increasing their Bitcoin holdings, as several on-chain metrics reach new highs.
The report, titled “The Bitcoin Monthly,” highlights on-chain activity indicators and the balance of Bitcoin held in over-the-counter (OTC) wallets, which have reached an all-time high. These wallets currently hold nearly 8,000 Bitcoins, marking an impressive increase of approximately 60% in the quarter.
ARK Invest utilizes data from OTC wallets as a representation of organizational activities, and the figures reported indicate a growing focus on Bitcoin by institutions and other large investors. The report also mentions the Grayscale Bitcoin Trust (GBTC), one of the most renowned digital asset investment products in the market. GBTC allows investors to own Bitcoin without the need to directly purchase or hold Bitcoin.
The Grayscale Bitcoin Trust has performed well in 2023, with the value of GBTC shares doubling from $8.65 to $20, representing a growth of over 150% in the past six months.
The report highlights that nearly 70% of the Bitcoin supply (out of the 19 million BTC currently in circulation) has not been moved in over a year, reaching an all-time high both in relative and absolute terms. This data suggests that long-term Bitcoin holders are significantly increasing their positions. “Out of the 19.4 million Bitcoins in circulation, nearly 70% have not been moved for at least a year or more, indicating a substantial increase in long-term Bitcoin holders.”
These findings from ARK Invest’s report provide valuable insights into the growing interest in Bitcoin among institutional investors and long-term holders. The increased accumulation of Bitcoin by these entities, coupled with the record-high on-chain metrics, indicates a positive sentiment and a strong belief in the future potential of Bitcoin as a store of value and investment asset.
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