Ark Invest’s monthly report for June shows that nearly 70% of the Bitcoin (BTC) supply remained unmoved for at least one year.
Amid the crypto winter of 2022, investors held on to nearly 70% of the total Bitcoin supply. At the same time, the discount for the Grayscale BTC (GBTC) drastically declined.
Bitcoin Holding Hits an All-Time High
Ark Invest released its monthly Bitcoin report for June, titled “The Dawn of the ETF Era?” As per the report, the quantity of Bitcoin held for one year or more has reached an all-time high.
The investment management firm elaborates:
“Of the 19.4 million bitcoin in circulation, nearly 70% has not moved in at least one year or more, confirming a strengthening holder base.”
GBTC Discount Reduces Factoring in a Spot Bitcoin ETF
Moreover, GBTC’s net asset value (NAV)’s discount hits the yearly lows declining from 42% to 30%. A 30% discount means that the share price of GBTC is 30% lower than the price of the underlying asset, i.e., Bitcoin.
The discount started decreasing from mid-June when BlackRock and eventually other asset managers filed for a spot Bitcoin ETF.
Ark Invest explained:
“The narrowing discount suggests that the market could be pricing in the approval of a Bitcoin spot ETF—increasing the odds of GBTC’s conversion into the same.”
Grayscale has been fighting a lawsuit against the Securities and Exchange Commission (SEC) for rejecting its application to allow the conversion of GBTC into a spot Bitcoin ETF. Last week, BeInCrypto reported that experts believe Grayscale has a 70% chance of winning the lawsuit.
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