Bitcoin futures: The value of large institutional holdings doubled in October
A class of investors has more than doubled the value of large holdings held in Bitcoin futures contracts (BTC) this month.
Institutions are installed in the long term
According to recent data from analyst Skew Markets on October 22, the value of the holdings of institutional investors went from less than 500 BTC (USD 4.11 million) on October 1 to more than 1,000 BTC (USD 8.23 million) on October 16 .
Profits reverse the downward trend in institutional demand from September. The launch of Bakkt’s Bitcoin futures coincided with the drop in open interest of around 1,300 BTC.
“As a reference, the institutions include pension funds, endowment funds, insurance companies, mutual funds and portfolio / investment managers whose clients are predominantly institutional,” said Skew.
What lack of interest?
It was thought that Bitcoin futures had ceased to be a priority for long-term institutional investors due to the fall in Bitcoin prices last month. Despite assumptions about sentiment, industry actors have recently begun to dispel the myth that interest is declining.
As Cointelegraph reported, Grayscale, the world’s largest asset manager focused on cryptos, confirmed that customers had been constantly contributing funds throughout 2019.
“We see that institutional investors invest with us all the time and it has been that way for a long time,” the company’s director of sales and business development, Rayhaneh Sharif-Askary, said in an interview earlier this month.
However, other sources have questioned the impact of institutions in regards to Bitcoin. This week, CoinShares strategy director Meltdem Demirors suggested custody practices; and in particular, he raised questions.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.