As the world was expecting the Bitcoin ETF to be a doorway for institutional money to become the cryptos. Well to recent OTC Trade Data Shows Institutional Investors Now Dominate Bitcoins Markets with High Volume Trades
Institutional Investors Are using Back Door for Crypto Buys as regulations still a hurdle
BTC ETF for cryptocurrency market. According to Bobby Cho, a global head of trading at Cumberland which is a Chicago-based cryptocurrency trading unit of DRW Holdings LLC that handles the over-the-counter purchases was quoted by Bloomberg saying that institutional buyers such as hedge funds have replaced high-net -worth individuals and have claimed the top spot as the biggest buyers of digital coins. According to Cho, for these large chunks of cryptocurrencies that these institutions would be worth more than $ 100,000 through private transactions.
Speaking to Bloomberg he said: What is happening on the board in this space? The Wild West is really turning the corner.
In the OTC markets, who are feeding this institutional crypto demand, according to Bloomberg, block miners, who have begun regular scheduling in the case of market rallies. Their own liquidity desks and operations.
Another prominent voice from the Crypto OTC markets is that of Jeremy Allaire, the chief executive officer of the Boston-based Internet Financial Circle who also shared similar facts. He was quoted saying
"We've seen triple-digit growth enrolling in our OTC business, that's a big growth area."
Large buyers and sellers like private sales because transactions on exchanges can move coin prices. In a private sale, parties can fix the price in advance, instead of worrying a sudden plunge or spike just as the transaction takes place.
The most important reason for this is the fact that there are many other reasons for this. at Fundstrat Global Advisers. According to Doctor who was quoted saying:
"At this point in time, there's more to an imbalance, that's why brokerage firms are springing up to the help of institutional buyers find inventory," he said.
Also, read: Bitcoin Still Stuck in Consolidation, Is it Going to Explode in Q4
Experts believe Institutions money will flock cryptos in 2019
As the date of the OTC market show, that is an immense demand among institutions for cryptocurrencies, many experts believe 2019 could be the year cryptocurrency markets would see an investment in a big way. The reason for this is because of the development of the cryptos. Credible and recognized exchanges operators like the ICE in the US and SIX in Switzerland are starting their crypto operations which would minimize the possibility of price manipulation and improve the operational technology of the exchange. Along with the improvement in exchanges, many firms have started offering custody solutions that would safeguard the crypto assets of the institutions. Coinbase, one of the most popular exchanges, has been launched by partnering with Electronic Transaction Clearing (ETC), a regulated broker-dealer. ItBit and Xapo have also begun to offer similar services and we expect more to follow. BTC ETF as the most important thing in the world.
In the OTC market, the framework for the cryptocurrencies will be implemented as an institution for the cryptocurrencies via exchange route as well. Its only matter of time will be investors flocking at crypto exchanges as well.
Do you think 2019 would be the year for institutional money to come in cryptos? Do not use your views on the same.
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