Recently, a report entitled “Institutional Investors Turn ‘Hodlers’ on Bitcoin Futures Market” was published by cryptocurrency derivatives trading platform ZUBR according to which institutional investors are looking at the world’s largest cryptocurrency by market cap Bitcoin (BTC) while betting money on the long-term performance of the coin. Furthermore, the report revealed the fact that institutional investors prefer regulated cryptocurrency exchanges for Bitcoin trading and that is what sets them apart from retail investors.
The ZUBR report stated that Chicago Mercantile Exchange (CME) and Bakkt are the two only exchanges that have witnessed a significant increase in the trading volume since the month of May and notably, the growth came from institutional investors on these platforms.
The report noticed that the open interest on Chicago Mercantile Exchange (CME) was higher as compared to that of its trading volume which shows that traders of regulated exchanges increasingly eyes at the long-term. Other regulated exchanges also witnessed an increase in open interest. The ZUBR report further added:
“Open-Interest on CME and other regulated exchanges has remained consistently higher in comparison to their traded volumes. This indicates that traders on these venues are increasingly looking at the long-term outlook and aren’t very easily swayed by large increases or decreases in price.”
Because of the long-term outlook, institutional investors prioritize regulated cryptocurrency exchanges for holding and trading Bitcoin (BTC). ZUBR report highlighted that open interest mainly surged high on two major regulated cryptocurrency exchanges CME and Bakkt, the cryptocurrency derivatives trading platform. The report added:
“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.”
The regulated cryptocurrency exchanges have attracted the attention of “different caliber of traders” to the cryptocurrency market. The researchers from ZUBR, however, believe that the crypto market is expected to witness the entrance of more institutional investors which will ultimately give rise to the long-term interest of Bitcoin on regulated crypto trading platforms.