Summary
TLDR: OTC trading desks are seeing a decrease in Bitcoin balances from institutional clients, indicating that Bitcoin ETF issuers will need to buy directly from exchanges due to supply/demand imbalance.
Key Points
1. OTC trading desks are seeing a decrease in Bitcoin inventory, from nearly 10,000 Bitcoins in Q2 2023 to less than 2,000, indicating a shift in institutional demand.
2. Institutions like Bitcoin ETF issuers will need to purchase Bitcoins directly from exchanges due to the decrease in inventory on OTC trading desks.
3. There is a supply/demand imbalance of 1:10, with daily mined Bitcoins versus daily ETF demand, highlighting the potential impact on the overall market dynamics.