Institutional Money Flowing into Crypto

institutional_crypto
Institutional investors are slowly building a position in the cryptocurrency market.

Although the past year has seen a drastic market rout, institutional investors are becoming more and more involved in the $220 billion cryptocurrency market than most realize. Although volume seems to be dropping one exchanges, behind the scenes there has been a craze booming for over-the-counter institutional buyers. And it shows no reason to slow down.

Whereas before, the largest cryptocurrency buys used to be from wealthy individual buyers, now they mainly come from hedge funds. According, to Bobby Cho, global head of trading a Cumberland, a Chicago-based cryptocurrency trading unit of DRW Holdings LLC, the biggest buyers recently have been these hedge funds. Handling over-the-counter purchases, Cho’s is not much different from many other cryptocurrency trading units: institutional buyers are in. The “Wild West days of crypto are really turning the corner,” Cho says in his interview with Bloomberg.

According to Digital Assets Research and TABB Group, the over-the-counter market had somewhere between $250 million to $30 billion in trade every day in the month of April. Recently, we have seen somewhere around $15 billion in trades everyday according to CoinMarketCap. The report further found that, although the OTC market has in fact taken a hit volume-wise due to the declining price action this year, it has not suffered as much as exchanges. Exchanges are, according to the report, down some 80 percent since their peak.

Many institutional buyers are now hopping in because the large price swings that once used to be always present in crypto markets have slowed down a bit this year, for now.

According to Jeremy Allaire, CEO of Circle Internet Financial:

“We’ve seen triple digit growth enrolling in our OTC business. That’s a big growth area.”

Others have remarked how, even now, there seems to be an imbalance with the amount of liquidity present and the demand. Sam Doctor, MD at Fundstrat Global Advisors, comments that the supply right now is simply not there – and neither are the ways to buy. This is why OTC businesses have been spiking as of late, because they are being depended upon to facilitate these dealings.

Sometimes, in the case of miners, they oftentimes sell their coins via an auction of some kind. If you own a mining machine, with hundreds of thousands of mining pools, you’re likely not selling these on an exchange. Instead, you sell them directly over-the-counter or through brokers. However, the real reason miners, institutional buyers, and other hedge funds purchase cryptocurrency OTC is simply because of liquidity. There simply are not enough enough coins offered for sale for institutional buyers.

Now mostly comes the next step: can crypto firms open the floodgates to these new institutional buyers and provide the necessary infrastructure for custodial services and easy buying? Can the space provide compliance and regulatory oversight? These are the fundamental questions that will ultimately tame crypto and make it palatable for the masses if resolved.

Institutional Legitimacy Grows

This all comes at a time when Bakkt, the crypto exchange begun by the New York Stock Exchange, is about to open its doors. Unlike other futures exchanges, Bakkt will offer physically-delivered Bitcoin futures contracts. Bakkt has the potential to only accelerate this new crypto-craze amongst institutional buyers. And it seems like it may be the icing on the cake needed to swing the bear market around.

Bakkt will be a joint venture with Microsoft, Boston Consulting Group, and Starbucks. The project has a grant vision. And even plans to create apps to give people easy ways to spend Bitcoin.

With Bakkt right around the corner, expected to be released in November, it seems unsurprising that so many institutional investors and hedge funds are trying to enter the crypto space. Frankly, it makes sense: and with future custodial services becoming more and more easier, with the help of Coinbase and others, we can expect this kind of interest to only continue to grow.

However, we are still right on the cusp of a breakthrough in the crypto space: the necessary infrastructure for large-scale buying of crypto-assets, like in traditional finance, is still being built. But with custodial services, OTC buying, and Bakkt’s highly-anticipated release, we can expect the difficulties associated with buying and storing cryptocurrencies to disappear over time.

141 comments

  1. I rarely comment, however i did a few searching and
    wound up here Institutional Money Flowing into Crypto –
    BitcoinPrice.com. And I do have 2 questions for you if it’s allright.
    Could it be only me or does it give the impression like
    some of these remarks look as if they are left
    by brain dead folks? 😛 And, if you are
    posting on additional online sites, I’d like to follow anything fresh
    you have to post. Would you make a list of every one of your community pages like
    your twitter feed, Facebook page or linkedin profile?

    My site weight loss tool [http://www.mhes.tyc.edu.tw/]

  2. Good – I should definitely pronounce, impressed with your site.
    I had no trouble navigating through all the tabs and related info ended up being
    truly simple to do to access. I recently found what I hoped for before you know
    it in the least. Quite unusual. Is likely to appreciate it for
    those who add forums or something, site theme . a tones way for your customer to communicate.
    Nice task.

    Also visit my homepage; growing mini-course

  3. You actually make it seem so easy with your presentation however I in finding this topic to be really something that I think I’d never understand.

    It seems too complicated and very vast for me.

    I’m having a look ahead on your next submit, I will
    attempt to get the hang of it!

    My web site; ckd diet

  4. I’m pretty pleased to uncover this page. I need to to thank you for
    your time for this particularly fantastic read!! I definitely
    liked every little bit of it and I have you
    bookmarked to look at new stuff on your website.

    Here is my web page :: drug crime (imperios6.com)

  5. Have you ever considered writing an ebook or guest authoring on other sites?
    I have a blog based on the same topics you discuss and would
    love to have you share some stories/information. I know my visitors would enjoy your work.
    If you’re even remotely interested, feel free to shoot me
    an e mail.

    Feel free to visit my web site :: benefits of hemp seed oil
    (Coy)

  6. Wow, incredible weblog layout! How lengthy have you been running a blog for?

    you make running a blog look easy. The full look of your web site is magnificent, as smartly as
    the content![X-N-E-W-L-I-N-S-P-I-N-X]I simply couldn’t
    leave your website prior to suggesting that I actually enjoyed
    the usual info a person supply in your guests? Is going to be back continuously to check out new posts.

    Feel free to surf to my blog post treat yeast infection

  7. I simply desired to thank you very much yet again. I am not sure what I would have used without the entire suggestions provided by you regarding my topic.
    It had become a very troublesome setting in my opinion,
    but witnessing the very well-written mode you managed it forced me to weep over contentment.

    I am just happier for this support and in addition expect you really know what an amazing job
    you’re accomplishing training most people thru a site.
    Probably you have never met any of us.

    Here is my web page: quality focused diets

  8. Greate article. Keep posting such kind of information on your site.
    Im really impressed by it.[X-N-E-W-L-I-N-S-P-I-N-X]Hey there, You have done
    a fantastic job. I will definitely digg it and personally recommend to my friends.
    I am confident they will be benefited from this website.

    Look at my web page … fat loss diet (Juliann)

  9. Excellent goods from you, man. I’ve keep in mind your
    stuff previous to and you’re just extremely great. I really like what you’ve
    received here, certainly like what you are stating and the way in which through which you assert it.
    You make it enjoyable and you still care for to keep it wise.
    I can not wait to read much more from you. That is really a terrific website.

    Feel free to visit my site – healthy eating diet plan

  10. Hello! I’ve been following your site for a while now and finally got the courage to go ahead and give you a shout out
    from Kingwood Texas! Just wanted to say keep up the great job!

  11. Have you ever thought about adding a little bit more than just your articles?

    I mean, what you say is important and all. But think of if
    you added some great graphics or videos to give your
    posts more, “pop”! Your content is excellent but with images and video clips,
    this blog could definitely be one of the greatest in its field.
    Amazing blog!

  12. Oh my goodness! Impressive article dude! Many thanks, However I am having problems with your RSS.

    I don’t know why I cannot subscribe to it.
    Is there anybody getting the same RSS issues? Anyone who knows the solution will you kindly respond?
    Thanx!!

  13. Do you have a spam problem on this website; I also am a blogger, and I was wondering your situation; many of us have developed
    some nice practices and we are looking to exchange strategies with other
    folks, please shoot me an email if interested.

    Feel free to surf to my web blog skin products

  14. I blog frequently and I really thank you for your content.
    Your article has truly peaked my interest. I’m going to
    take a note of your site and keep checking for new
    details about once a week. I opted in for your RSS feed as well.

  15. I’m not sure exactly why but this website is loading very slow for me.
    Is anyone else having this problem or is it a problem on my end?
    I’ll check back later and see if the problem still exists.

  16. I have been exploring for a little bit for any high quality articles or weblog posts on this sort of space .
    Exploring in Yahoo I eventually stumbled upon this site. Reading this info So i am satisfied to exhibit that I have an incredibly good uncanny feeling I discovered just
    what I needed. I so much indisputably will make certain to don?t omit this
    web site and provides it a glance on a constant basis.

    My web-site :: growing weed indoorshave

  17. You actually make it seem so easy with your presentation but I
    find this topic to be really something which I think I would never understand.
    It seems too complex and very broad for me. I’m looking forward for your next post, I will try to get the hang of it!

    Feel free to surf to my page … good healthy eating

  18. Fine way of explaining, and pleasant paragraph to obtain facts concerning
    my presentation focus, which i am going to present in institution of higher education.

  19. Hello just wanted to give you a quick heads up and let you know a few
    of the pictures aren’t loading correctly. I’m
    not sure why but I think its a linking issue. I’ve tried it in two different
    web browsers and both show the same results.

  20. First of all I want to say wonderful blog! I had a quick question which I’d like to ask if you don’t mind.
    I was curious to know how you center yourself and
    clear your thoughts before writing. I’ve had a difficult time clearing my mind in getting my ideas out there.
    I truly do take pleasure in writing but it just seems like the first 10 to 15 minutes are generally lost just
    trying to figure out how to begin. Any suggestions or tips?
    Kudos!

  21. obviously like your web site but you have to test
    the spelling on quite a few of your posts. Many
    of them are rife with spelling problems and I find
    it very troublesome to tell the truth on the other hand I’ll surely come
    again again.

    Here is my website; best sex tips

  22. Thank you so much regarding giving me personally an update on this issue on your website.
    Please understand that if a brand new post becomes available or if perhaps any alterations occur
    with the current write-up, I would want to consider reading more and focusing on how to make
    good usage of those methods you talk about. Thanks for your time and consideration of other
    people by making this blog available.

    Also visit my site :: lose weight diet

  23. Everything is very open with a very clear description of the challenges.
    It was truly informative. Your website is extremely helpful.

    Many thanks for sharing!

  24. Howdy! This post couldn?t be written any better! Looking at this article reminds me of my
    previous roommate! He continually kept preaching about this.
    I most certainly will send this information to him. Fairly certain he will have a
    very good read. Many thanks for sharing!

    Here is my site; Lorrie

  25. I still cannot quite feel that I could often be one of those reading the important suggestions found on this blog.

    My family and I are sincerely thankful for your
    generosity and for giving me the chance to pursue the chosen profession path.

    Many thanks for the important information I managed to get
    from your web site.

    Here is my webpage forum.m2clasic.ro

  26. That is really interesting, You’re a very skilled blogger.
    I’ve joined your feed and look forward to searching for more
    of your great post. Additionally, I’ve shared your
    site in my social networks

  27. What i do not understood is in reality how you’re now not
    really much more smartly-preferred than you might be now.
    You are very intelligent. You already know therefore considerably on the subject of this topic,
    made me personally imagine it from so many numerous angles.
    Its like women and men are not interested until it’s one thing to accomplish with Lady gaga!

    Your individual stuffs great. All the time deal with it up!

  28. My spouse and I stumbled over here different website and thought I should check things out.
    I like what I see so i am just following you. Look forward to
    finding out about your web page repeatedly.

  29. Hello! This is kind of off topic but I need some help from
    an established blog. Is it very hard to set up your
    own blog? I’m not very techincal but I can figure
    things out pretty fast. I’m thinking about setting up my own but I’m not
    sure where to begin. Do you have any points or suggestions?

    Thank you

    my web site :: prettypeople.club

  30. Hi there! This blog post couldn?t be written much better!
    Reading through this post reminds me of my previous roommate!

    He constantly kept preaching about this. I will forward this post to him.
    Fairly certain he will have a good read. I appreciate you for sharing!

    Feel free to visit my blog … Fredric

  31. Good day! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.
    Anyways, I’m definitely delighted I found it and I’ll be book-marking and checking back often!

Leave a Reply

Your email address will not be published. Required fields are marked *