Cathie Wood: Institutions Used The Correction This Year To Move Into Bitcoin

What Happened: Cathie Wood, the founder, and CEO of ARK Investment Management, believes that institutions viewed the crypto market’s correction in March 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 move into Bitcoin (CRYPTO: BTC).

The ARK founder’s comments also reflected another tweet from another ARK analyst Frank Downing. Downing shared an excerpt from a recent Chainalysis report depicting the massive increase in the rate at which large institutions adopted DeFi.

According to the report, large institutional trading transactions, or those transactions above $10 million, accounting for over 60% of DeFi transactions in Q2 2021.

Read also: Morgan Stanley Bought 0M Shares Of Grayscale Bitcoin Trust

By comparison, the same segment accounted for under 20% of DeFi transactions in Q3 2020.

Meanwhile, another report from Buy Bitcoin Worldwide revealed that institutions now hold close to $70 billion in 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 around $31 billion.

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

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

Grayscale stock closed at $38.90, down 0.64% and was trading at $38.92, up 0.051% after-hours at press time.

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