Cathie Wood: Institutions Used the Correction to Switch to Bitcoin This Year

What happened: Cathie Wood, the founder and CEO of ARK Investment Management, believes institutions saw the March crypto market correction as a buying opportunity.

Referring to on-chain analysis by ARK’s crypto analyst Yassine Elmandjra, Wood said on Twitter that institutions used the correction to Bitcoin (CRYPTO: BTC).

The ARK founder’s comments also echoed another tweet from another ARK analyst Frank Downing. Downing shared an excerpt from a recent Chainalysis report showing the massive increase in the rate at which major institutions are adopting DeFi.

According to the report, large institutional trades or transactions over $10 million, accounting for more than 60% of DeFi transactions in the second quarter of 2021.

Also read: Morgan Stanley Bought 0 Million Shares of Grayscale Bitcoin Trust

In comparison, the same segment accounted for less than 20% of DeFi transactions in the third quarter of 2020.

Meanwhile, another report from Buy Bitcoin worldwide revealed that institutions now have nearly $70 billion worth of Bitcoin.

Of the $70 billion, $40.1 billion is owned by Bitcoin asset managers, of which Grayscale, the largest digital asset manager, owns 654,600 BTC worth about $31 billion.

The Bitcoin Trust in Grayscale (OTCMKTS: GBTC) is also the top choice for institutions, including ARK Invest, to gain exposure to Bitcoin. At the time of writing, ARK was the largest shareholder in GBTC, with over 9 million shares worth $350 million.

Price promotion: Bitcoin was trading at $47,066 at the time of writing, down 3.75% in the past 24 hours. The coin had a daily trading volume of $27 billion at the time of writing.

Grayscale shares closed at $38.90, down 0.64%, and traded at $38.92, up 0.051% after hours at press time.

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