Institutional investors have replaced individuals with a large net capital in the field of cryptocurrency transactions worth more than $100 000. It is reported Bloomberg.
The publication writes that traditional investors, particularly hedge funds, have become more involved in cryptocurrency market capitalization now ranges from $220 billion, at levels where the minimum sum of the transaction amounts to hundreds of millions of dollars. Also changed the approach to work of miners — the biggest sellers on the market. Now they are planning the regular sales of coins, instead of “throw” them during a market rally.
In this regard, Cho Bobby (Bobby Cho), head of global trading at Chicago trading company, DRW Holdings LLC, has shared his opinion that “the days of the Wild West of cryptocotyle do come,” and in the field there is an increase in the professional level.
“One of the biggest criticisms in the direction of the stock market from institutional investors touched its high volatility. Over the last four to six months, the market traded in a very narrow range, and, it seems, due to this, traditional financial institutions becomes easier to enter this space,” said Cho.
At the same time, according to Bloomberg, hedge funds and miners carry sales on the OTC market (OTC). According to the study by the group of analysts of Digital Assets and Research TABB Group, the daily trading volume on the OTC market in April ranged from $250 million up to $30 billion. And cryptocurrency exchange in recent times can boast $15 billion per day.
Managing Director of data processing firm Fundstrat Global Advisers Sam Dr. Sam (Doctor) told Bloomberg that increasing the number of institutional investors in the cryptocurrency market causes a disruption of balance, which in turn, causes the broker to come into the industry to help institutional investors to find “goods”.
Institutional investors in the cryptocurrency industry lately, there’s been a lot of talk. Experts believe that their arrival could start a new rally of bitcoin, and many companies are working on products for legal entities to speed up the arrival of. For example, in September, the conglomerate Citigroup has offered a new investment product low risk called Digital Asset Receipt for financial institutions. And even earlier, in may, cryptocurrency exchange BitGo showed service institutional funds in digital currency.
