- \n
- Bitcoin institutional funds see a blanket 10% reduction in holdings over three months.<\/li>\n
- Analysis says that the Bitcoin treasury model is \u201cbreaking\u201d as company valuations fall below net asset value.<\/li>\n
- Coinbase premium has been negative for a record 93 days.\u00a0<\/li>\n<\/ul>\n
Fund exposure drops as Bitcoin treasury companies face squeeze<\/strong>\u00a0<\/h2>\n
Data from onchain analytics platform CryptoQuant<\/a> shows that combined institutional BTC exposure, which includes trusts, exchange-traded funds (ETFs) and closed-end funds, has fallen from 1.33 million to 1.20 million BTC over three months.<\/p>\n
![\"\"](\"https:\/\/s3-images.ctmedia.io\/media\/content\/pasted-image-2273.png\")
<\/p>\n<\/p>\nBitcoin fund holdings. Source: CryptoQuant<\/em><\/p>\n
The drawdown comes as another major Bitcoin institutional investment vehicle, corporate treasuries, faces upheaval. Business intelligence software company Strategy, which holds the largest Bitcoin treasury of any public corporation, sold 1,638 BTC last week<\/a>.\u00a0<\/p>\n
\u201cBitcoin treasury companies once amplified demand through a reflexive financing loop. Their shares traded above the value of their Bitcoin holdings, allowing them to issue equity or debt, buy more Bitcoin and reinforce the premium. That mechanism weakens when market capitalisations fall below net asset value, and financing becomes dilutive,\u201d contributing analyst Novaque Research commented.<\/p>\n
CryptoQuant highlights the plight of several Bitcoin treasury companies with stock trading below the net asset value (NAV) of their BTC holdings. In Strategy\u2019s case, the discount disappears according to the valuation methodology used.<\/p>\n
Basic share count puts the discount at 0.7 as of Thursday, but once the company\u2019s $8 billion debt and liquidation preference of its STRC preferred stock is factored in, the mNAV equals 1.03.<\/p>\n
![\"\"](\"https:\/\/s3-images.ctmedia.io\/media\/content\/pasted-image-2274.png\")
<\/p>\n<\/p>\nStrategy Updated mNAV. Source: <\/em>Bitcoin Treasuries<\/em><\/a><\/p>\n
\u201cThe on-chain evidence supports a loss of institutional demand, although it cannot directly isolate treasury companies,\u201d CryptoQuant notes.<\/p>\n
Coinbase Premium sees record negative stint<\/strong><\/h2>\n
The drawdown in both fund exposure and Bitcoin treasury holdings comes as the Coinbase Premium index sees a record 93 days of negative readings.<\/p>\n
Related: <\/strong><\/em>Bitcoin price<\/a>-metric basket sees longest capitulation since FTX blow-up: Glassnode<\/strong><\/em><\/a><\/p>\n
As Cointelegraph reported<\/a> this week, the Index, which measures the difference in price between Coinbase\u2019s and Binance\u2019s BTC\/USDT pairs, has been negative since the start of May<\/a> \u2014\u00a0a record streak.<\/p>\n
![\"\"](\"https:\/\/s3-images.ctmedia.io\/media\/content\/pasted-image-2275.png\")
<\/p>\n<\/p>\nCoinbase Premium Index. Source: CryptoQuant<\/em><\/p>\n
Analysis sees the return of the Premium as a prerequisite for a BTC price recovery. This week, Web3 marketing platform FOUR argued that the genesis of the months-long negative reading did not lie in blanket US selling pressure.<\/p>\n
\u201cUntil the premium flips positive, institutional buying from U.S. investors appears muted\u2014suggesting this is more of a demand shortage than aggressive selling,\u201d it told<\/a> X followers.<\/p>\n
In a note quoted<\/a> by Reuters last month, Citi highlighted ETF flows in particular as an \u201cimportant driver of prices\u201d while cutting its BTC price forecast to $53,000 through 2027.<\/p>\n
Related:<\/strong> Bitcoin price<\/a> \u00b7 BTC live chart<\/a> \u00b7 Ethereum price<\/a> \u00b7 ETH gas fee<\/a> \u00b7 Bitcoin price today<\/a> \u00b7 Top 10 cryptocurrencies<\/a><\/p>\n