Institutional investors are showing more interest in bitcoin with their significant accumulation of the cryptocurrency in June, according to a report by Ark Invest.

The company’s Monthly report for June 2023 revealed that the amount of bitcoin stored on OTC trading desks has increased, which suggests institutional investors are becoming more confident in bitcoin as a secure investment.

The report also looked into the firm’s earnings and discussed the transparency, accessibility, and on-chain activity of blockchain data. It found that bitcoin transactions have risen 50% in the last year, indicating a surge in demand from both individual and institutional investors.

June saw bitcoin receive strong technical support with the $26,200 level and its short-term holder cost basis of $27,465. Bitcoin closed the month 14% above this benchmark, which experts say has played a major role in stabilizing the digital asset, making it more attractive to investors.

Grayscale’s Bitcoin Trust (GBTC) also enjoyed a successful month, with its discount to net asset value (NAV) falling from 42% to 30%. This could be due to the positive sentiment around BlackRock’s Bitcoin ETF filing and Grayscale’s plan to move its GBTC service to a spot ETF. Prices for GBTC more than doubled this year, reaching $20 from January 2023.

The report also noted that the amount of bitcoin that hasn’t moved in at least a year has reached an all-time high of 70%, which could be attributed to factors such as BlackRock’s Bitcoin ETF application and Grayscale’s legal battle with the SEC.

ARK Invest’s analysis of several bitcoin metrics, such as mining difficulty and miner revenue, found that 11 showed positive trends, while only two metrics, transaction volume and time-weighted turnover, remained relatively stable.

Overall, the report indicates that there is a growing presence of institutional investors in the bitcoin market, which could lead to further stability and a wider adoption of the cryptocurrency.