Research: Institutional appetite for Bitcoin has evaporated as OTC trades approach YTD low

2022-12-14 23:30

Institutional appetite for Bitcoin (BTC) has slowly evaporated due to the current bear market situation and is reflected in the significant drop in over-the-counter (OTC) trades, according to an analysis of Glassnode data by CryptoSlate.

A bull run in 2021 saw several institutional players pile into the flagship digital asset, but that interest faded as the price plunged to new lows in 2022. Data from three different OTC desks showed that the flow of funds from this group has slowly evaporated.

According to River Financial, an OTC desk acts as a dealer for traders looking to trade a given asset which could be securities, currencies, etc. They are usually used when a given trade is impossible on centralized exchanges.

CryptoSlate’s analysis showed that the seven-day moving average for total transfers to OTC desk wallets is now close to 2018 lows. OTC trades peaked during covid 19 pandemic when BTC was trading at around $3000.

Source: Glassnode

Since then, the market witnessed considerable spikes throughout 2021 but slowed as the year ended. OTC trades in 2022 saw a significant spike in July when investors were still reeling from the Terra ecosystem collapse.

Since then, the 7-Day moving average for OTC desk inflows has fallen and is now approaching a year-to-date (YTD) low.

Purpose ETF has seen no activity since early August

The world’s first Bitcoin ETF, Purpose Spot Bitcoin ETF, has had a pretty quiet year.

CryptoSlate analysis revealed that the ETF had not seen any major activity since late July and early August. According to Glassnode data on its 7-Day moving average, Purpose ETF BTC holdings peaked between June and July 2022.

Source: Glassnode

The Glassnode chart on its inflows and outflows showed that the ETF had experienced heavy outflows between May and July 2022, coinciding with when BTC’s value dipped by 40%. In July mainly, Purpose ETF saw its largest wick of outflow.

Source: Glassnode

It experienced some inflows and outflows in early August and has seen little to no activity since then.

Despite the months of inactivity, the ETF holdings are still significantly above the levels in March 2021 when it launched. According to Purpose Invest, the ETF’s asset under management sits at $396.7 million (23,240 BTC).

The post Research: Institutional appetite for Bitcoin has evaporated as OTC trades approach YTD low appeared first on CryptoSlate.

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otc trades evaporated institutional appetite bitcoin according

Источник: cryptoslate.com

otc trades → Результатов: 72


Фото:

Institutional Investors Opt for Bitcoin’s OTC Market Instead of Standard Exchanges

Bitcoin’s over-the-counter (OTC) market, is growing in popularity with institutional investors as they look for ways to trade large amounts of Bitcoin. According to a Forbes article published on October 23, 2018, institutional investors can only undergo OTC trades since standard cryptocurrency exchanges lack the required infrastructure and liquidity necessary to execute their large orders.

2018-10-25 20:29


Фото:

Kraken Introduces ‘Block Trading’ OTC Option for Trades of $100K or More

A short post on the Kraken blog announced a major addition to the exchange. Kraken introduced a block trading option for those who are ready to bet $100,000 or more on crypto. Block Trades by Definition Venture capitalists, investment firms, family offices, and high net-worth individual investors are often willing to gamble hundreds of thousands — perhaps millions— on the cryptocurrency market.

2018-9-19 13:00


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