"Institutional Demand Cannot Be Confirmed by On-Chain Data Alone"

As institutional demand for virtual assets (cryptocurrencies), especially leading asset Bitcoin (BTC), has increased this year, opinions have emerged that it is impossible to accurately gauge this demand based solely on on-chain data.

According to Decrypt, a virtual asset-focused media outlet, on the 2nd (Korea Standard Time), engineer Aslan Tashtanov asserted, "Traditional blockchain indicators are missing the scale and nature of institutional flows."

He explained, "Institutions tend to buy mainly through centralized exchanges (CEX) and over-the-counter desks," and added, "These are designed to handle large transactions without disrupting the market."

Connie Kwan, CEO of GAIB, similarly stated, "Large-scale institutional fund inflows are rarely reflected in common on-chain indicators," further explaining, "This is because there is significant inflow through institutional investment products such as Exchange-Traded Funds (ETF) and Exchange-Traded Products (ETP)."