Skip to content Skip to footer


Research by crypto analytics firm Glassnode has revealed that institutional demand remains slow as the Bitcoin market continues to fight for support while mining selling pressure increases.

The report stated that one of the largest factors in the institutional narrative has been the one-way flow of crypto assets into Grayscale’s GBTC trust fund. Traders sought to arbitrage the high premium observed in 2020 and early 2021, it added.

#Bitcoin has held onto support this week, absorbing yet another capitulation, and likely sell-side pressure from miners

We analyse
– A second on-chain capitulation
– Balance of miner revenue + selling
– Institutional demand

Read more in The Week On-chainhttps://t.co/fK3SA55jjv

— glassnode (@glassnode) June 28, 2021

It continued to report that since February, the GBTC product has reversed to trade at a persistent discount to net asset value (NAV). It dropped to the deepest discount of -21.23% in mid-May. This discount has continued to close up following the market selloff and is currently around -5%.

Glassnode also observed outflows from two large Canadian BTC funds and a flattened net change in coin balances held on Coinbase, concluding:

“Between observations of the GBTC premium, net outflows from the combined Purpose and QBTC ETFs, and a stagnant Coinbase balance, institutional demand appears to remain somewhat lackluster.”

ETH Outflows Hit Record Highs

In a related report by institutional asset manager CoinShares, it was reported that Bitcoin outflows had actually slowed down over the past week.

Total Bitcoin outflows across all funds had slowed to just $1.3 million, down from $89 million for the previous week. Some funds, such as Grayscale, actually saw minor inflows of BTC, suggesting mixed sentiment for Bitcoin amongst investors, the report noted.

The fund manager’s total AUM is currently $30 billion, of which 74% or $22.4 billion is in its Bitcoin trust product.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.





Source link

Leave a comment

X
X
X