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 BTC/USD.

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 $240M 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 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.