Oct 02, 2020
According to the cryptocurrency derivatives exchange ZUBR, institutional investors are increasingly basing their trades on Bitcoin’s long-term outlook. Investors are no longer affected by large increases or decreases in prices. They are not quickly swaying away from the market due to price volatility.
ZUBR has released a new report titled “Institutional Investors Turn ‘Hodlers’ on Bitcoin Futures Markets.” In the release, ZUBR analyzed regulated exchanges like the Chicago Mercantile Exchange (CME) and the Bakkt. It compared investment behaviors of regulated exchanges during both bull and bear markets. ZUBR stated that institutional investors on regulated platforms are trying to “physically” hold the bitcoin they invested rather than simple cash-based futures.
According to the report, last year, the trading volume of Bitcoin futures exceeded $ 4 trillion. The increase in interest in Bitcoin investment mainly noticing in the Chicago Mercantile Exchange (CME). But the crypto derivatives company Bakkt is not far behind.
The report is completed with these statements:
“The writings might not be on the wall yet for full-scale institutional interest. But there is a clear long-term interest in the cryptocurrency on regulated exchanges that has not been seen before.”
Currently, regulated exchanging platforms had “the highest levels of open-interest in comparison to the traded volume at any point in time.” ZUBR believes that as more institutional investors enter the market, long-term interest in Bitcoin on regulated exchanges may further increase.
“What is clear is that regulated exchanges have attracted a different caliber of traders to the market. Potentially, shifting the future dynamic of the cryptocurrency into what believers have wanted all along – displace gold.”