Over 2000 Institutional Bitcoin Holds Hit a Record High

Bitcoin (BTC) investment vehicles are seeing “huge” outflows this month, a new sign that institutional appetite for exposure to BTC is growing.

The organization is actively “collecting” Bitcoin.

While BTC price action did not attract and created extreme panic among retail buyers at 50% below the $69,000 ATH in November 2021, not everyone feels the risk. 

According to data from blockchain research firm Arcane Research published this week, BTC exchange-traded products (ETPs) now have a record-high number of Bitcoins under management.

A total of 205,008 Bitcoins are under the control of institutional funds. Analyst Vetle Lunde asserts that while BTC’s May rally was strong in ETP, June has seen even more breakout days despite only being around four days out of the month.

“The first two days of June saw massive net inflows into Purpose, 3iQ Coinshares, and BITO, pushing global BUM to an all-time high of 205,008 BTC.”

In the face of such substantial cash flows, even the CEO of the investment fund Three Arrows Capital, Mr. Zhu Su, has recently repeatedly admitted his mistakes in predicting the price of BTC and investing and supporting it. The fund’s sponsor, LUNA-UST, was also surprised.

On the other hand, the Bitcoin mining revenue of miners is also recording the worst decline in 2022. The state of Bitcoin mining companies that simultaneously plunged in mid-May has not shown any signs of recovery yet positive.

Therefore, Bitcoin miners are likely to prepare a plan to sell their BTC holdings to cover the cost of mining operations. And one of the world’s largest bitcoin miners, Riot Blockchain (RIOT), has “opened” the act, selling more than half of the Bitcoins (250 BTC) the company mined in May. 466 BTC), raised $7.5 million to balance the company’s cash.

Ultimately, Fed rate hikes will act as a vast “threat,” further dragging down the entire crypto market.

In a press conference after announcing the decision to raise interest rates by 0.5% recently, Fed Chairman Jerome Powell made many statements to continue to consider 0.5% for the subsequent rate hikes in June and July and do not intend to use the interest rate of 0.75%. However, that was enough for the general financial market to crash at the moment, not just crypto.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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