According to a new report by Bloomberg which is in the focus of our daily cryptocurrency section, institutional investors have replaced the high net-worth individuals and are officially the biggest buyers of cryptocurrency transactions.
As Bloomberg reported, traditional investors, as well as buyers from hedge funds, are more and more involved in the $220 billion crypto market cap – making private transactions and scheduling regular coin sales instead of holding or offloading them during the market rallies.
According to Bobby Cho who is the global head of trading at the Chicago-based crypto trading unit of DRW Holdings LLC named Cumberland, “the Wild West days of crypto are really turning the corner.”
Cho also stated that this situation demonstrates that a professionalization is happening across the board in this space:
“One of the biggest criticisms of crypto by institutional investors has been the volatility. Over the last four to six months, the market has been trading in a very tight range, and that’s seems to be corresponding with traditional financial institutions becoming more comfortable diving into the space.”
With this, it is clear that hedge funds and miners are shifting the sales to the over-the-counter (OTC) market, which facilitated $250 million to $30 billion in trades per day in April this year – while the exchanges have recently handled about $15 billion in daily trades.
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