Even though some investors are still bullish on Bitcoin despite the major price dips that have happened since April, a new report has shown that institutional investors may be losing interest in Bitcoin.
According to a report by Glassnode, the demand for Bitcoin from institutional entities is suffering a downturn. Noticeably, the institutional demand for the asset was one of the major factors that pushed the asset over its current all-time high at over $64,000.
In the report, Glassnode pointed out that even though institutional investors are still showing signs of having more than enough money to invest in assets, they might no longer be too enthusiastic about Bitcoin.
Giving a typical example, the company pointed to the Bitcoin Trust held by Grayscale (GBTC). In its review of the GBTC, Glassnode mentioned that the product has been trading at a discount to its net asset value (NAV) since February this year. While this is now a trend, it was not usually so as GBTC has historically traded at a big premium to NAV. However, it’s worth mentioning that the discount has decreased from a record -21.2% in May to about 7% at the moment.
The report also mentioned that two of the highest trading Bitcoin ETFs in Canada have traded at a meager rate. The Purpose and QBTC Bitcoin ETFs have recorded a combined outflow of of 8,037 Bitcoin in the last month. 3IQ’s QBTC ETF has witnessed a massive decline of 10,483 Bitcoin in the last two months. 3IQ CEO Fred Pye has commented that this trend shouldn’t be a cause for concern. According to Pye, the decline shows that investors are seeing gains and are willing to cash out their profits.
