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Bitcoin Holding in the crosshairs of institutional investors

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Professional and institutional investors plan to increase their movements towards cryptocurrencies. This is indicated by a study carried out by the analysis firm ZUBR. According to the report, Bitcoin Holding is emerging as a first-rate option.

The highlight of the case is that investors are more interested in the pioneer cryptocurrency than in fiat money. All this, despite the common tendency to consider digital currencies as high-risk assets due to their volatility.

Investing in Bitcoin, more than in traditional denominations, can have several readings. The most common among cryptocurrency enthusiasts is the tendency for fiat money to depreciate, in the face of the shortage of Bitcoin, which would guarantee a permanent upward trend.

The Bitcoin Holding presents itself as a lifesaver

The markets of the future of Bitcoin, is becoming places of confluence for institutional investors. In this sense, they participate in derivatives with which they contribute to Bitcoin and cryptocurrencies in general reaching the investment sphere.

Another aspect that should be highlighted is that the Bitcoin Holding that investors are applying is of a particular type, the “physical form”. This means that the amount of cryptocurrencies is delivered directly to the investor, the opposite of other ways in which fiat currencies equivalent to Bitcoin are delivered.

To get an idea of ​​the rise of the Bitcoin Holding among these investors, the figures from last year should be highlighted. Consequently, in 2019 alone, trading volumes in cryptocurrencies exceeded $ 4 trillion USD, according to the aforementioned report.

The graph shows the trading volumes of Bitcoin futures, where the strength that the Holding is acquiring is highlighted. Source: ZUBR

Who are these institutional investors?

Those finance professionals who invest money from others (people or organizations) are known as institutional investors. Specifically exchanges or hedge funds, among others.

Of these, the report explains, one of the most interested in the Bitcoin Holding has been the Chicago Mercantile Exchange (CME). Likewise, the participation of a crypto derivatives firm managed by International Exchange. They are the two largest institutions in terms of trading volumes in Bitcoin.

For its part, Wall Street is another of the places where high volumes of Bitcoin are being traded in the Holding modality. Last August, another firm, Chainnalisys, highlighted that the New York Stock Exchange was “accumulate Bitcoin en masse“, In a trend that”is just beginning”.

By then, the aforementioned firm produced figures that recently, 90% of cryptocurrency transfers in North America were made in professional media.

Impressive figures

It is important to highlight the terms with which the ZUBR report qualifies the growth of the Bitcoin Holding during this year. He assures that these are “impressive figures”, considering that already in August they had reached $ 3 trillion in funds traded in Bitcoin.

At the same time, it is noted that monthly, volumes amount to $ 378,000 million USD. All this translates into a percentage average of 60% higher than the figure for the second quarter of the year.

Such a visible correlation for Bitcoin, that it can be considered one of the decentralized assets that attracts all kinds of investors, be they institutional or retail. This fact is presented as a sign of healthy and market maturity”, Analyzes the report.

Data to take into consideration

  • Between September 2019 and September 2020, $ 4 trillion USD in Bitcoin trading funds were moved.
  • Currently, they move more than $ 378,000 million USD on a monthly basis.
  • The places where the Bitcoin Holding is most active are the Chicago Mercantile Exchange (CME) and the crypto derivatives firm Bakkt.
  • Interest in trading Bitcoin futures by institutional investors may be related to pessimistic forecasts for fiat money.



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