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.

Latest reviews for GBTC

February 2018

Buckingham Research

Start cover on

To sell

july 2015

Wedbush

Start cover on

surpass

See more analyst ratings for GBTC
View the latest analyst ratings

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.