Share this article
Institutional Demand for Bitcoin Remains Weak: Glassnode
Demand indicators include the Purpose ETF experiencing a slowdown in net inflows and GBTC trading at a notable discount.
Updated Mar 6, 2023, 3:19 p.m. Published Jul 20, 2021, 4:04 p.m.
The Purpose Exchange-Traded Fund, one of the first approved bitcoin exchange-traded products (ETPs), has seen a slowdown in net inflows this week after experiencing a period of relatively strong demand in May and June, according to a report by Glassnode.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
“The week closed with the largest net outflow of -90.76 BTC since mid-May,” said the report.
The slowdown suggests institutional demand for the largest currency by market cap remains weak across these regulated products, according to Glassnode.
The bitcoin price fell early Tuesday below the crucial support level of $30,000 for the first time in four weeks. As of press time, bitcoin was trading around $29,960.
While data tracked by Glassnode shows weak institutional demand, the situation is somewhat encouraging in Europe.
“This is only $3 million of outflows," said Laurent Kssis, managing director of ETPs at 21Shares AG. "In Europe, some ETP bitcoin have seen larger outflows in one day.”
Also contributing to the bearish case for bitcoin is the performance of the Grayscale (GBTC) bitcoin trust share price. The GBTC shares continued to trade last week at a notable discount to the fund's net asset value, ranging between 11% and down to 15.3%, demonstrating lackluster demand for the cryptocurrency, according to Glassnode.
Grayscale is owned by CoinDesk parent Digital Currency Group.
Read more: Bitcoin Drops Below $30K for First Time in 4 Weeks
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Bitcoin’s $70,000 to $80,000 zone highlights gap in historical price support
Five years of CME futures data shows where bitcoin has, and has not, built meaningful price support.
What to know:
- Bitcoin has spent relatively little time between $70,000 and $80,000, just 28 trading days, making that level among the least developed price ranges in terms of historical consolidation and support.
- This lack of time spent is reinforced by Glassnode’s UTXO Realized Price Distribution, which shows limited supply concentrated between $70,000 and $80,000, suggesting that if another pullback occurs, bitcoin may need to consolidate in this zone to establish stronger structural support.
Top Stories
