In a recent report published Dec. 17, research firm Diar has found that institutional investors have shifted towards higher liquidity over-the-counter (OTC) physical Bitcoin (BTC) markets.
The findings show that digital exchange Coinbase has more bitcoin trading volume than Grayscale's bitcoin investment trust on the OTC markets. Also to be considered is that the OTC markets are only open for trading 31% of the yearly tradeable hours.
In the first three quarters of 2018, Grayscale reportedly registered $216 million in net inflows into its Bitcoin Investment Trust. The platform gained over 1% of Bitcoin’s circulating supply, now holding over 203,000 BTC.
Coinbase reportedly saw a 20 % increase in BTC trading volume during OTC markets hours in 2018. Whereas, GBTC saw a 35 % drop in volumes compared with the same period in 2017. The report further elaborates:
“With no time stop on trading, institutions and big money would require access around the clock from fears of a rude awakening in a market that remains highly volatile, despite that decreasing to new lows this year. On the flip side, this may also be a hurdle for institutions that would require amped up manpower to decide to open-risk.”
Max Keidun, CEO of virtual currency exchange HodlHodl which also provides an OTC desk service, reportedly said that large order requests have increased exponentially in 2018 “doubling month-on-month.” "It's quite harder than usual to find a seller at current prices," Keidun stated.