The latest Bitcoin news show that one class of investors has more than doubled the value of the long positions that it holds in Bitcoin (BTC) futures contracts this month. As fresh data from an analyst named Skew Markets shows, the BTC futures institutional long positions went from below 500 BTC ($4.11 million) on October 1 to over 1,000 BTC ($8.23 million) on October 16.
Long positions held by institutional accounts at the CME have been rising again in October.
For reference, institutions include pension funds, endowments, insurance companies, mutual funds & portfolio/investment managers whose clients are predominantly institutional. pic.twitter.com/96N2XZwo9e
— skew (@skewdotcom) October 20, 2019
The gains reverse a decline in the institutional longs from September. The launch of Bitcoin futures from the Bakkt coincided with open interest falling from around 1,300 BTC.
“For reference, institutions include pension funds, endowments, insurance companies, mutual funds & portfolio/investment managers whose clients are predominantly institutional,” Skew clarified.
If you are asking yourself why is the increase in BTC futures institutional long positions so fundamental, it is worth noting that these futures were thought to have taken a longer-term break from being top of the agenda for many institutional investors in the face of last month’s Bitcoin price downturn.
Despite the numerous assumptions on the sentiment, industry players have recently begun dispelling the myth that interest is fading out. As we reported, Grayscale which is the world’s largest crypto-focused asset manager went on record and confirmed that clients had steadily been pouring in funds throughout 2019.
“We see institutional investors invest with us all the time and that’s been the case for a long time now,” the director of sales and business development at the firm Rayhaneh Sharif-Askary added in an interview this month.
Other sources imply that the impact of institutions on Bitcoin is big. This week, the CoinShares chief strategy officer, Meltdem Demirors, suggested that custody practices are the specific aspect that poses questions.
In the other cryptocurrency news, we can see that Bitcoin has a good position on the market today, trading at $8,274 in an overall increase that occurred to the market cap overnight. Currently, the total cryptocurrency market cap is at $224 billion and Bitcoin’s dominance has fallen overnight to 66.4%. This is a good indicator for the altcoins which are recording continuous gains.
While BTC managed to only rise by 0.43% on the day, altcoins such as Bitcoin Cash (BCH) and Binance Coin (BNB) are surging with 3% gains.
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