Glassnode Report: Institutional Investors Are Losing Interest in Bitcoin

New findings from blockchain analytics firm Glassnode suggest that institutional demand for cryptocurrencies is slowing.

Glassnode said in a report today that institutional investors are losing interest in Bitcoin, the largest cryptocurrency by market capitalization. The report pointed out that this can be proved by looking at the Grayscale Bitcoin Trust (GBTC). Glassnode said that GBTC is a popular investment product, which is now trading at a discount to its net asset value (NAV). For many years, investors have paid a premium to buy GBTC.

“GBTC has been trading at a persistent discount to NAV since February 2021, hitting -21.23% in mid-May,” the report said.

Additionally, two popular exchange-traded funds (ETFs) — Purpose and 3iQ — have seen their total Bitcoin holdings decline. The combined net flows of the two ETFs over the past month show a total outflow of 8,037 BTC.

Glassnode added that the token balance of Coinbase, the largest cryptocurrency exchange in the United States, has been stagnant. The San Francisco-based exchange is the preferred way for institutions to buy Bitcoin, but the balance has remained flat since December last year. This shows that institutional demand seems to be still somewhat sluggish.

“Based on the observed GBTC premium, net outflows from the Purpose and QBTC ETFs, and stagnant Coinbase balances, institutional demand appears to remain somewhat subdued,” the report concluded.