New reports show that institutional investors are slowly losing interest in Bitcoin, even though Grayscale BTC Trust continues to trade at a discount and money is flowing out of the BTC ETF, as we can see more in this article.

New reports show institutional investors are losing interest in BTC, which is one of the main reasons Bitcoin rallied, according to Glass Node. The company said in a report that investors are losing interest in the number one cryptocurrency and evidence of this is in the Grayscale Bitcoin Trust. GBTC is a popular investment product that allows investors to trade stocks of trusts that hold larger amounts of BTC and is currently trading at a discount to net asset value. This means stocks in grayscale BTC trusts are less likely than BTC to be bought. This only happened recently, as investors paid a premium to buy GBTC for years. The report said:

“The main reason for Bitcoin’s price spike in 2020 and 2021 is both the narrative and the reality of institutional demand. One of the key factors driving this is the one-way flow of coins into Grayscale’s GBTC trust funds as traders try to arrange the high premiums observed in 2020 and early 2021 on the NAV, hitting the lowest in mid-May Discount of -21.23%.

The report adds that total BTC has decreased for two popular exchange-traded funds, 3iQ and Purpose. The combined net outflow of both ETFs last month shows that a total of 8,037 BTC is flowing out of the products. 3iQs’ holdings fell by 10,483 BTC, as Toronto-based ETH CEO Fred Pye said:

“There is no slowing down at all. The request we receive is still real and important. “

According to Pye, the flow is that investors have paid off and made profits. The 3iQ ETF is one of the few crypto ETFs available in North America that is an investment product that tracks the price of an asset like BTC and investors can buy stocks that represent that asset. While the US is still waiting for an ETF, Canada has approved a number of funds. Glassnode added that coin holdings on Coinbase are the largest exchange in the US and are still stagnating. The San Francisco-based exchange pumped out BTC as it was the preferred way for investors to buy the coin. The report concludes:

“Between observations of GBTC premiums, net outflows from combined Purpose and QBTC ETFs, and stagnating Coinbase balances, institutional demand seems to be even weaker.”

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