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Topic: Growing number of institutionnal investors (Read 1151 times)

hero member
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August 15, 2020, 03:33:39 PM
#69
Yes Bitcoin is growing, some people might not know that, but it is the truth. Recently I have got lots of people asking me about Bitcoin and cryptocurrencies and how they can be part of it, like there are so many people who are always talking about it than before.

It’s really cool, and I like the fact that a lot of people are starting to recognize it. If it was before when I ask people if they know Bitcoin or cryptocurrency, they always say no, but this time around it’s like everyone knows about it, even though they are not part of it, they still know about it and that’s really cool. Although from what I have seen, some of them are still being reluctant about it because it is volatile.
copper member
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@The Pharmacist

I don't know what is considered a huge stake but if we take Microstrategy since you mention the company, they bought 21k BTC and it didn't do anything on the price (I think the price even dropped a bit). I don't think institutional investors will influence the price a lot since they won't buy in mass in 1 shot (if they have a sain brain).

What is weird with the latest news on MSTR, and nobody talked about it, is the fact they bought only bitcoin,s we could have expected diversity in their investment... it's a pretty serious risk to bet it all on Bitcoin.

That was the same day the news was out by the way



... This would be
good for researching, to see the top gainers during pandemic, and top losers. If we had some statistic about that, we would
have a better picture about money flow in last months.

https://www.marketwatch.com/story/here-are-the-best-and-worst-stocks-during-the-first-100-days-of-the-coronavirus-pandemic-2020-06-17
legendary
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I would think it's an excellent thing in general if I believed that these large institutional investors would be owning actual cryptocurrency--bitcoin in particular.  But there's less than 21 million coins in circulation, and if you're a fund with really deep pockets you wouldn't be able to buy a huge stake in bitcoin without driving the price up and nearly cornering the market. 

What I think is going to happen with all of this money is that it's going to be invested in derivatives, like those offered by Bakkt and the like.  You can buy and sell a lot of options without affecting the price directly, so I think that's what the institutions are going to do.

This discussion sort of reminds me of this recent thread, which is about a company that decided to keep its cash reserves in the form of bitcoin--and they bought a lot of it, which I thought was a pretty risky move on their part.  Interestingly enough, MSTR's stock price is up over 6% today, so it doesn't appear that there's going to be a shareholder revolt because of this. 
sr. member
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That’s a very thorough study. Capital flowing into crypto market from so many institutional investors might definitely mean an uptrend for all the crypto assets out there. And then everyone would want a piece of it sooner or later. I am surprised to see that almost above 30% investors looked at the innovative technology and the high potential. I did not expect the number to be above 15-20%.

I agree that volatility and market manipulation is the main reason that is stopping many investors from getting their feet into this market but there is one other major reason that is no set of regulations have been made clear by the government.
sr. member
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During the pandemic, many people lost their jobs and therefore their livelihoods. Millions have become unemployed. In your opinion, in such conditions, they thought how to invest the last remaining funds in bitcoin for storage? I don’t think so.On the contrary, people try to keep cash, which will be appreciated in almost any bad outcome.

Under such circumstances, they are not going to trust fiat cash either. With the federal debt at historic highs, only idiots would keep their wealth in fiat cash. For me, the only safe asset seems to be bullion. I am talking about physical gold, and not about paper gold managed by the banks and other financial institutions. If you want to keep your wealth securely, then gold bars/coins seems to be the best option as of now.

   While many people lost jobs, and many businesses are almost dead, some companies are making profit, and they are looking
for new investment opportunities. I didn't hear anyone complain in pharmaceutical and telecommunication sectors. This would be
good for researching, to see the top gainers during pandemic, and top losers. If we had some statistic about that, we would
have a better picture about money flow in last months.
sr. member
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During the pandemic, many people lost their jobs and therefore their livelihoods. Millions have become unemployed. In your opinion, in such conditions, they thought how to invest the last remaining funds in bitcoin for storage? I don’t think so.On the contrary, people try to keep cash, which will be appreciated in almost any bad outcome.

Under such circumstances, they are not going to trust fiat cash either. With the federal debt at historic highs, only idiots would keep their wealth in fiat cash. For me, the only safe asset seems to be bullion. I am talking about physical gold, and not about paper gold managed by the banks and other financial institutions. If you want to keep your wealth securely, then gold bars/coins seems to be the best option as of now.
member
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off course they invest in  couse this news that they are investing makes the investors FOMO.
OFF COURSE they invest if they know the price will go up lol



its funny...when btc was down there was so many bad news about btc Cheesy like restrictions and blabla...they got it with bargain price now they tell guys crypto is good its so bullsih go and invest buy the top...they say that idiots come and give us your money we are the big wall street players we want to be richer ....now its green light btc is so bullish wait when btc will hit to 20k  i think it will be all over news cnn bbbc and every where suckers coming in with money lol
sr. member
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since 2017, the cryptocurrency market has changed a lot and one of the most important achievements in the cryptocurrency market is futures trading. It seems to me that it is the availability of futures on the cryptocurrency market that makes it possible to organize arbitrage trading to the right extent. As for institutional investors, the infrastructure is gradually being created in the cryptocurrency market, for example, the Huobi Group has launched an over-the-counter platform for large players. At the same time, BitGo created a clearing system of a similar level. I believe that it was the current transfer that was marked by a very strong relationship between the stock and cryptocurrency markets.
During the pandemic cryptocurrency has become a view of people as a good asset storage for new people. In my view, the increase in investors is happening. I am sure there will be many new projects in the community's view because this game is only a term and they know the risk will be borne by themselves. is a good and advanced future for cryptocurrency in this pandemic. Popularity will develop fast


During the pandemic, many people lost their jobs and therefore their livelihoods. Millions have become unemployed. In your opinion, in such conditions, they thought how to invest the last remaining funds in bitcoin for storage? I don’t think so.On the contrary, people try to keep cash, which will be appreciated in almost any bad outcome.

legendary
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I feel like the best way we could continue with this input from the really rich people would be to make sure that we do not allow them to do anything we can't do, and we should just follow them.

Buy when they buy, sell when they sell, long when they long and short when they short, be ready for whatever they "might" do in the future and always be on their toes, otherwise they will destroy all of us and take all of our money once again here too just like they do in the fiat world and we can't allow something like that to happen here as well. They are both a great help to us, but they are also a great threat to us as well, it is not a world where we could be friends with billionaires or companies with that much money, they will never accept us as part of them but bitcoin gives as an advantage.
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I’m expecting better changes in the price of bitcoin. I just don’t know why the price has been finding it difficult to get pass the current rate at which it is now ($9,400). It’s been quite long that it’s been at this rate.
Well maybe by this time you are glad that bitcoin reaches at $10K again, it's been long time since then, probably a month of no sight behind the $9k. I don't know why this happens, there's no major event happening as I know, but who am I to doubt this is bitcoin it moves every time. However I'm quite skeptical at it, this might drop sooner or later, we already got a bunch of FOMOs these days who are contented with a small profit out of it. This might be the sign of the growing number of institutional investors, they keep adding and adding funds to promote bitcoin. Or just another trap before plunging to $5K? Are they doing it both in bitcoin and ethereum?


Institutional investors are known for creating FOMO in crypto market if they are really growing in big number in crypto space then we can expect a strong bull rally incoming weeks. It is going to be midway of July but we are still unable to pass the biggest psychological resistance level of $10,000.
You just guessed it right mate lol look at the price now after 20 days you just said it  Cheesy
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Unfortunately, many illegal activities involving Bitcoin
can make institutional investors change their minds. Hopefully from now on can reduce the number of negative things
such as illegal money laundering and hacking attacks. So you can make institutional investors increase the amount of
its investment in Bitcoin.   



The speech about Bitcoin and illegal stuffs can be heard only with the masss media and institutional investors don't listen to this, otherwise they'd all be poor. Only the low information voters do. In another word, they don't care about what is negatively say.
On another side, the US dollar is the most used currency for illegal things, yet you can see it doesn't stop them to trade USD with HTF.

Argumenting with BTC and criminal activities is a double standard to me. It was funny 5 years ago when it was used to criticize BTC but no more
sr. member
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Growing number of institutionnal investors

The only logical next step to happen is that institutional investors get bigger share of Bitcoin. That will be the fuel for next bull market.
The post shows that many institutional investors are still unsure about entering the market and the reasons behind them.
So, what you are saying is basically impossible unless they gain knowledge of the situation and decide to level up their game by taking risk and pouring in some capital in the crypto market.

The next bull run will probably be fueled by the new investors after they get to see the market momentum and also, we cannot forget the whales who act as the game changers in all of this. Institutional investors will probably come into play the next year when some fixed set of regulations are released by the government against cryptocurrencies and blockchain.
legendary
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So anyway, I applied as a merit source :)
I see several institutional investors who have started to become interested in Bitcoin, this is a good sign for Bitcoin.
Which ones exactly did you see? I have heard many venture capital funds putting money in bitcoin but only it is hearsay. It is always possible because capital funds are looking to diversify but without insider proof it is difficult to confirm. Undecided

Quote
And I believe in growing Institutional investors can make the price of a Bitcoin pump, if this happens then the mass adoption of Bitcoin is everywhere and will increase in number.
It can be both. The funds look for profit. If they dont see it then will dump. Depending on how much the owners of that fund are willing to risk we can variable changes in the market, not just a pump.

Quote
Unfortunately, many illegal activities involving Bitcoin can make institutional investors change their minds. Hopefully from now on can reduce the number of negative things such as illegal money laundering and hacking attacks.
Illegal activities reduce the amount of faith that these investors have on bitcoin. Like I said, they are profit seeking. So if there is any reason to suspect foul play whether proved or not, they are likely to bail out.
full member
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I see several institutional investors who have started to become interested in Bitcoin, this is a good sign for Bitcoin.
And I believe in growing Institutional investors can make the price of a Bitcoin pump, if this happens then the mass
adoption of Bitcoin is everywhere and will increase in number. Unfortunately, many illegal activities involving Bitcoin
can make institutional investors change their minds. Hopefully from now on can reduce the number of negative things
such as illegal money laundering and hacking attacks. So you can make institutional investors increase the amount of
its investment in Bitcoin.   

hero member
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Institutional money coming is a good one because any sector institutional money goes into, it comes with its attending advantages which points to the direction that the trusts is that sector is on the increase, expansion is happening, regulation is knocking and most importantly initiatives is going to be on the increase as well. Put all these together, an untapped areas in short year can become the bride of many but it comes with its costs too because the players might not play according to the rules thereby running everything to the ground then they move on to the next good avenue to continue the cycle.
legendary
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That would be a great news to start up while there are lots of bad news around, this news of many institutional investors having great interest into cryptocurrency would ease all those negativities we have right now. Maybe they have already come into realization that at times like this, they see more how important the existence and usage of cryptocurrencies are good because the stock market is also directly affected by the pandemic but not the crypto market itself since the issue is related on fiat affairs that is most commonly used by people at time of crisis.

It was so nice to know how people are already realizing the worth of cryptocurrencies most specially talking about Bitcoin. This just proves how as time passes by the popularity of Bitcoin still continue to grow that attracts potential investors to make the crypto community to continuously grow. This is a good implication that as many investors get into cryptocurrencies we can expect a more progressive and bright future for the whole crypto community in the future.
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This is a good thing that there are a lot of people right now are having investment into the world.of cryptocurrency it looks like a reflection that the use of the crypto is getting closer to make more adaptation to our community and I think some of them not only make an investment instead using this to pay for other things that are supported by the country.

I hope in southeast Asia they will support the use of it because on this pandemic outbreak physical payment or money is not highly recommended to them.

The reason for the increase in the number of investors in the organization is that the price of Bitcoin is rising bitcoin is almost halving currently the situation in the country is much worse due to the virus. Unemployment is on the rise as various companies lay off their workers but the price of Bitcoin is rising so everyone is leaning towards investing to eliminate their unemployment due to which the number of investors is increasing.

Investment over survival? I think it's better to save their funds because having a bad time on this pandemic outbreak cannot make an additional earning because not having a job also the market is volatile and there is no assurance that we can make a huge amount on investing bitcoin. But still, it's they want we cannot avoid this.
legendary
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I think investors know where they can gain more if they are going to invest at this time that pandemic continue to damage the economy of every country. Maybe they are comparing the stock market and cryptocurrency and based of that ,they see the big difference if the choose bitcoin or cryptocurrency to invest. The volatility of bitcoin will give them more profit that investing now in stock market.
If you thinking that the cryptocurrency market is a safe heaven during economic crisis then you will learn the hard way when everything goes down, stock market will suffer and so does the cryptocurrency market but the worst affected will still be the stock market as the valuation depends upon the actual performance of the company listed in those exchanges and there is nothing substantial for majority of the companies to show in the coming financial report.
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I think investors know where they can gain more if they are going to invest at this time that pandemic continue to damage the economy of every country. Maybe they are comparing the stock market and cryptocurrency and based of that ,they see the big difference if the choose bitcoin or cryptocurrency to invest. The volatility of bitcoin will give them more profit that investing now in stock market.
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A market without regulation was one of the strong points for cryptocurrencies but since people started to accept the KYC bullshit, they participated to kill this point. Your stuff about INTL companies adopting cryptos is irrelevant, as I said we're considering institutional investors

I totally agree with you on this point, KYC is the worst thing that happened in the world of Crypto, I see it as an attempt by large institutions and governments to control Crypto and kill decentralization and convert to central. For me, i stay away from any service ask me for KYC.
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since 2017, the cryptocurrency market has changed a lot and one of the most important achievements in the cryptocurrency market is futures trading. It seems to me that it is the availability of futures on the cryptocurrency market that makes it possible to organize arbitrage trading to the right extent. As for institutional investors, the infrastructure is gradually being created in the cryptocurrency market, for example, the Huobi Group has launched an over-the-counter platform for large players. At the same time, BitGo created a clearing system of a similar level. I believe that it was the current transfer that was marked by a very strong relationship between the stock and cryptocurrency markets.
During the pandemic cryptocurrency has become a view of people as a good asset storage for new people. In my view, the increase in investors is happening. I am sure there will be many new projects in the community's view because this game is only a term and they know the risk will be borne by themselves. is a good and advanced future for cryptocurrency in this pandemic. Popularity will develop fast
sr. member
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I’m expecting better changes in the price of bitcoin. I just don’t know why the price has been finding it difficult to get pass the current rate at which it is now ($9,400). It’s been quite long that it’s been at this rate. I have been seeing the media saying that there institutional investors getting interested and investing in bitcoin. Seriously, there should be better changes in the price by now, it should start going up more than this level we have been at. Through out last month of June this was what I kept looking out for and still never happened and we are in a new month, hoping it’s going to be different.

Institutional investors are known for creating FOMO in crypto market if they are really growing in big number in crypto space then we can expect a strong bull rally incoming weeks. It is going to be midway of July but we are still unable to pass the biggest psychological resistance level of $10,000.

You won’t fool anyone with this tale. 2 years ago everyone was waiting for institutional investors to come to the market and transfer the game. Everyone was waiting for crypto spring. And what is the result?
We got BAKKT and other tools for institutional, but nothing happened. Everything remained exactly as it was. A lot of time has passed already, where did you get the idea that now institutional people will change something. I doubt it very much. To do this, they need to be one team, or otherwise they will have each other in a speculative game in the market.
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since 2017, the cryptocurrency market has changed a lot and one of the most important achievements in the cryptocurrency market is futures trading. It seems to me that it is the availability of futures on the cryptocurrency market that makes it possible to organize arbitrage trading to the right extent. As for institutional investors, the infrastructure is gradually being created in the cryptocurrency market, for example, the Huobi Group has launched an over-the-counter platform for large players. At the same time, BitGo created a clearing system of a similar level. I believe that it was the current transfer that was marked by a very strong relationship between the stock and cryptocurrency markets.
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The result of one vote may not be accurate, but the results are shocking. bitcoin have gained wide popularity soon, despite the lack of a lot of information, regulators or investment directions.
Institutional funds that accept few digital currencies and investments in them are speculative or exchange trades.
I have done a questionnaire on Facebook, a small percentage have recognized digital currencies and a small part of them have known or invested in them.
adoption need more investors and more investments
hero member
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I’m expecting better changes in the price of bitcoin. I just don’t know why the price has been finding it difficult to get pass the current rate at which it is now ($9,400). It’s been quite long that it’s been at this rate. I have been seeing the media saying that there institutional investors getting interested and investing in bitcoin. Seriously, there should be better changes in the price by now, it should start going up more than this level we have been at. Through out last month of June this was what I kept looking out for and still never happened and we are in a new month, hoping it’s going to be different.

Institutional investors are known for creating FOMO in crypto market if they are really growing in big number in crypto space then we can expect a strong bull rally incoming weeks. It is going to be midway of July but we are still unable to pass the biggest psychological resistance level of $10,000.
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What is stopping them?
- market manipulation
- lack of knowledge
- volatility


We can add to these main reasons to prevent people from investing in cryptocurrencies in general also their fear of theft and hacking, due to the many incidents that have occurred in the world of Crypto and especially the abuse and closure of large exchanges such as Binance and also Cryptopia and IDAX and others.
Also, the lack of regulations for the cryptocurrencies market, this makes it difficult for major international companies to adopt the cryptocurrencies market and this also has a negative impact.

But here the topic is about institutional investors not the average Joe on his sofa. Since we aren't supposed to keep our coins on an exchange platform, who cares if Binance, Bitstamp, or any other is hacked, there are so many alternatives.

A market without regulation was one of the strong points for cryptocurrencies but since people started to accept the KYC bullshit, they participated to kill this point. Your stuff about INTL companies adopting cryptos is irrelevant, as I said we're considering institutional investors
legendary
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What is stopping them?
- market manipulation
- lack of knowledge
- volatility


We can add to these main reasons to prevent people from investing in cryptocurrencies in general also their fear of theft and hacking, due to the many incidents that have occurred in the world of Crypto and especially the abuse and closure of large exchanges such as Binance and also Cryptopia and IDAX and others.
Also, the lack of regulations for the cryptocurrencies market, this makes it difficult for major international companies to adopt the cryptocurrencies market and this also has a negative impact.
sr. member
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I believe that volatility is the number one reason why many institutional investors do not invest in the crypto market. The risks are too high. Too many unpredictable factors.
The history of the crypto market shows us that even in the most stable times, the cryptocurrency can behave extremely unpredictably, ruining all plans and playing against the majority opinion.
This means that someone is able to manipulate the market and this is too much risk.
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Growing number of institutionnal investors

The only logical next step to happen is that institutional investors get bigger share of Bitcoin. That will be the fuel for next bull market.

The increase is good for the market of bitcoin. Institution buying cryptocurrency means we are going to see more interest and individual investors are going to feel more secured because bigger investors are more likely to bring a kind of direction and avoid scammers.
newbie
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investors will start getting rid of their investments when the failures happen and start losing or selling the investments.
They hide from the economy and the volatility, so they diversify and invest in many areas, but when life returns to normal they will return again to safe investments.
Lack of knowledge of the things that will be treated by time
Volatility requires a lot of money to stabilize prices.
legendary
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Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊
This is a good thing that more and more people or investors we have in the crypto the demand will keep rising and leading to the rise and use of bitcoin in the globe will continue to rise. Also we need to thing one thing in mind that some of this intuitional investors may be for temporary phase as they sees the opportunity now in the bitcoin they enter and once they see the opportunity in other asset or somewhere else they will exit form here and invest elsewhere.
Of course, more and more requests will move the price of bitcoin on the exchange will experience a surge, but investors are also thinking about the risks of how to invest with bitcoin now have begun to consider because it is difficult to predict whether investing in bitcoin will experience profits or indeed vice versa, because prices do not can be sure to be stable during its course there must be a more severe crash before because of whale.
Therefore some companies still consider investing in bitcoin with such a reason.
member
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The more use it, the better. And if the big players use it, it just shows that they have a certain trust in it. Fidelity and Vanguard already commited and Goldman is more like doing it beneath the surface - https://www.forbes.com/sites/youngjoseph/2020/06/06/goldman-sachs-tells-clients-bitcoin-isnt-good-but-it-seems-to-secretly-like-it

The trust slowly moves from fiats to cryptos and that just can be a good thing

full member
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Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊

This is a good thing that more and more people or investors we have in the crypto the demand will keep rising and leading to the rise and use of bitcoin in the globe will continue to rise. Also we need to thing one thing in mind that some of this intuitional investors may be for temporary phase as they sees the opportunity now in the bitcoin they enter and once they see the opportunity in other asset or somewhere else they will exit form here and invest elsewhere.
hero member
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~snip~

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

To some degree, institutional investors are problem to the market when compared to random individual buying his first bitcoin. When an individual wants to invest in cryptocurrencies, he will place bid at current market price (maybe little less or more) which will contribute organically to the market growth. But on the other side, imagine if someone wrote 5 minutes call options worth $10M and then intentionally bought $20M worth of Bitcoin in an open market so that price drop by 1-2% in next 5 minutes. Everyone who bought call option won't exercise the option because it will lead to loss. Premium paid by the buyers on Option of $10M will become profits of the writer. This is how big players (institutional investors) can easily manipulate the organic growth of unregulated markets like that of Bitcoin.

Not sure if I really understand this, but why would the prices drop 1-2% if someone buys $20M worth of bitcoins? Shouldn't the price go up since a lot of sell orders will be filled instantly in the exchange? Sorry if I am missing something here but having institutional investors invest heavily into crypto currencies should force prices upwards, or not? Also, why would you want to exercise your options? Just hold them until prices go up even further.
legendary
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So anyway, I applied as a merit source :)
Yeah, but how much are these information about institutional investors actually true?
Do we have some concrete figures or is this just an impression?
We can assume that their number is high because whenever we talk about whales are not talking about individual "retail" investors but hedge funds and capital funds. So these can be considered to be a part of the institutions putting their money or out of bitcoin. Proper numbers are to be taken with a grain of salt, how much of it is true is questionable and often politically influenced but they are there, no doubt about it.

Quote
The question is how many of them is making significant investments and what sums are we talking about. I have a feeling that we are talking about hypotetic investments and projected effects, not real ones.
Now if they are whales then the investment amount is significant. JP Morgan made Bitcoin purchases and I am sure the rest of the banking sector did too. So it is not something to push under the carpet, they will become significant more with time. Roll Eyes
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Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊
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"Growing number of institutional investors"

This reminded me on discussions from years ago. Before 3 and more years. It was a discussion about how bitcoin got where it was in that moment with help of people, ordinary people and small businesses, and that was a first wave with a peak in 2017! Next wave will be triggered by institutional investors and big and huge companies and corporations, and that wave can be stronger than all waves before.
Now this is just a discussion we had here, and anyone can agree or disagree with this point of view, it's not matter, I saw some logic in this?
legendary
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And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

In my opinion most BTC holders are speculators, so Wall Street is just joining the ranks of existing retail investors.

Is it good? For price, probably yes, although there is also a possibility that accounting practices like commingled omnibus accounts and rehypothecation will artificially inflate the supply of BTC-pegged derivatives. That would suppress prices on physically settled BTC derivative markets, which due to arbitrage would also suppress spot prices.

If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding.

That was just a limited number of high risk institutional investors and small hedge funds. I'm sure more conservative institutions are focused on BTC.
legendary
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~snip~

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

To some degree, institutional investors are problem to the market when compared to random individual buying his first bitcoin. When an individual wants to invest in cryptocurrencies, he will place bid at current market price (maybe little less or more) which will contribute organically to the market growth. But on the other side, imagine if someone wrote 5 minutes call options worth $10M and then intentionally bought $20M worth of Bitcoin in an open market so that price drop by 1-2% in next 5 minutes. Everyone who bought call option won't exercise the option because it will lead to loss. Premium paid by the buyers on Option of $10M will become profits of the writer. This is how big players (institutional investors) can easily manipulate the organic growth of unregulated markets like that of Bitcoin.
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Have read lots about the institutional investment in cryptocurrency especially in bitcoin, they even do so much to acquire most of the newly mined coins. To me they only help to create the scarcity while the price is still manipulated. It is difficult now to appreciate their investment with the current market state, it does not increase the volume trade as well and money seems not to be flowing in the space. Invariably this looks like a time buying proposal to the space, when the time is ripe the price will go up.

Yeah, but how much are these information about institutional investors actually true? Do we have some concrete figures or is this just an impression?
The question is how many of them is making significant investments and what sums are we talking about. I have a feeling that we are talking about hypotetic investments and projected effects, not real ones.
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And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

This money is solely a market money, it won't go for the development of something new or innovative. If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding. I agree that ICOs turn out to be epic fail as the time progressed but still money was flowing for the development of something new, something innovative in crypto domain. And even in the failure, we got some serious break-through in crypto industry. But now this money don't actually gonna give fundamental benefit to crypto industry rather it would disturb (will make more volatile) the crypto market due to excessive leverage play by the big investors.

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

Volatility is also what attracts people to gamble their money in cryptocurrencies, let's be honest. They all expect a pump and dump movement to make cash. If Bitcoin's price was so stable people wouldn't come.
legendary
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And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

This money is solely a market money, it won't go for the development of something new or innovative. If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding. I agree that ICOs turn out to be epic fail as the time progressed but still money was flowing for the development of something new, something innovative in crypto domain. And even in the failure, we got some serious break-through in crypto industry. But now this money don't actually gonna give fundamental benefit to crypto industry rather it would disturb (will make more volatile) the crypto market due to excessive leverage play by the big investors.
newbie
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Does the report talk about digital or crypto assets? Because there are many reports that use the term digital assets to denote digital currencies.
I would not be surprised if I heard that many rich people have already started investing even a small portion of their wealth in digital assets, but that will not exceed 1% to 5% of the value of their assets.
When institutions and governments move, we will see more demand, and therefore we may find some people advancing more aggressively and investing about 30% or more of their wealth in these assets.
legendary
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So anyway, I applied as a merit source :)
In my opinion true institutionnal will never invest in btc. They will prefer 30 years bonds
You have any proof of the same? I am sure there are newer investors entering the market and even in institutional nature, there are more than one analyst there. Someone will have knowledge of crypto and gradually it will increase in number. So we might see a slow but steady increase in interest in bitcoin from institutional investors.

Point is that I have seen this topic come up back in 2018 and 2019, couple of thread maybe but yeah its an ongoing thing now. Considering the news and the analysis to be correct, we are getting a growing interest in crypto. However I have also seen news articles that promote buying of bonds, gold, ETFs and so on. So you cannot take a single analysis to be complete but rather you need to make sure that you keep bitcoin and you invest in the fiat markets as well. Not doing so is an illogical thing and pure stupidity. I am bullish on bitcoin but for a very long term only. Fiat will be there for the time being and you need to make sure you have its share.
full member
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The direction things are going now, we have already killed our dream of Bitcoin being adopted for transaction. It’s just to invest, make your money and leave. But anyway, cryptocurrency is really good and just like a survey that I saw earlier this year, a lot of people liked that cryptocurrency has a low correlation when you compare with other assets.

People has been showing interest for a long time and I can tell from people around me that they are interested in cryptocurrency, but the fear of investing in a volatile asset keeps them to stay away from doing so. But I keep trying to convince them by showing past incredible performances of bitcoins; hope they may adopt bitcoins before institutional funds start in-flowing. If institutions start their play then we need to wait for 4 more years to catch another perfect entry.
sr. member
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It’s okay, though sometimes I worry about all these things a bit. I usually feel like we are forgetting the main purpose of crypto, or isn’t there anything wrong with the fact that we are all now seeing Bitcoin as just investment? I am not saying that I don’t like the fact that we can make money, I like that.

But, a lot of people these days are just focused on how much money they can make. And what annoys me is that once they make that money they all leave. Yep, I have seen a few of the so called early investors who became millionaires, most of them will tell you not to buy because things have changed. I don’t think there would be any difference between them and these institutional investors, once they make profit they will sell off. They are afraid to invest because they fear they will not make profit.
sr. member
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Have read lots about the institutional investment in cryptocurrency especially in bitcoin, they even do so much to acquire most of the newly mined coins. To me they only help to create the scarcity while the price is still manipulated. It is difficult now to appreciate their investment with the current market state, it does not increase the volume trade as well and money seems not to be flowing in the space. Invariably this looks like a time buying proposal to the space, when the time is ripe the price will go up.
jr. member
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The main question - how many money they are ready to invest. Right now not so much, i guess
legendary
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They are just going to keep on coming seeing that the rewards are obviously higher than the risks associated in the current time-frame. Investor confidence is also higher compared to the previous years since more and more of them already knew how the market works, or at least grasped the basic movements of the bitcoin market during their stay. With the way the stock market goes currently, it's not surprising that some institutional investors will look for alternatives, and cryptocurrencies fall on that line. It will be quite exciting to see some of the major players in the traditional markets to express that they are slowly buying and buying all this time since the weight of their pocket can seriously cause sharp market movements on the upside.
newbie
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Between the third quarter of 2019 and the first quarter of 2020, the amount invested in more than doubled — from $388.9 million to $818.5 million. If "smart money" on Wall Street is finally starting to pour money into crypto, this tendency should continue. Investors are loosing confidence in fiat money.
sr. member
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- 91% of them would like in the next 5 years cryptos represent at least 0.5% of their portfolio.

If this is an accurate figure, then this would really be a very significant indicator of what will happen in the next 5 years with the cryptocurrency market. When we talk about big players who have trillions of dollars, then even 0.5% represents a significant amount that must undoubtedly have a significant impact on the price of Bitcoin. It would be really interesting to witness when it all starts, because the amounts of BTC are limited and may not be enough for everyone.
The growth is significant for the cryptocurrency in general, I hope this will continue year by year so we just sit and wait til that time comes. If we get enough boost, it would not take a long 5 years to make we could just make it in 2 to 3 years, after the pandemic I guess. The scarcity of the bitcoin will be the key for its success, early adopters don't need to compete in the market just the buy bitcoins.
What is stopping them?
- market manipulation
- lack of knowledge
- volatility

It seems to me that big investors are waiting for some green light in the form of global regulation of cryptocurrencies, because they probably still estimate that the risk of investing in such things is much higher than the possible profit. I do not mean only the volatility, but also the security of the entire crypto infrastructure.
Indeed. There are some hindrances especially in terms of legality of cryptocurrencies, just recently I've read that there are some upbringing of the banning of cryptocurrency in India. This might affect greatly the crypto scene, if this happens expect the crypto to slightly dive and remain on that range shortly.
legendary
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I can see this growing more and more. Once Bakkt becomes more popular it will only increase the amount of institutional investors and fuel more innovation too.

BAKKT will get very popular as soon price of Bitcoin get to $20000.  I am sure that was main reason why was made. Those that learn more about Bitcoin acquired it other ways then bought on BAKKT. Once price reach $20000, there will be plenty of those having no ideas what Bitcoin is just wanted to have it.
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Institutional investors: endowment funds, commercial banks, mutual funds, hedge funds, pension funds, and insurance companies. institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans.
legendary
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- 91% of them would like in the next 5 years cryptos represent at least 0.5% of their portfolio.

If this is an accurate figure, then this would really be a very significant indicator of what will happen in the next 5 years with the cryptocurrency market. When we talk about big players who have trillions of dollars, then even 0.5% represents a significant amount that must undoubtedly have a significant impact on the price of Bitcoin. It would be really interesting to witness when it all starts, because the amounts of BTC are limited and may not be enough for everyone.

What is stopping them?
- market manipulation
- lack of knowledge
- volatility

It seems to me that big investors are waiting for some green light in the form of global regulation of cryptocurrencies, because they probably still estimate that the risk of investing in such things is much higher than the possible profit. I do not mean only the volatility, but also the security of the entire crypto infrastructure.
hero member
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What is stopping them?
- market manipulation
- lack of knowledge
- volatility

we all have seen statements for conservative billionaires like Warren Buffet against Bitcoin and I think a lot of people in the financial industry is sharing the same sentiments as Warren Buffet.

Those statements have not even worked against bitcoin and cryptocurrency as we all see. Is just like the Chinese having much hate to bitcoin in 2017 but we saw an ATH that year.
So those statements can only make people who have been looking for a reason not to invest to justify themselves. Soon a new ATH will show in bitcoin and altcoins.
hero member
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What is stopping them?
- market manipulation
- lack of knowledge
- volatility

Aren't this problems can easily solve by them? I mean they have the money to learn and manipulate the crypto market all they want just like what they have been known to be doing in the stock market for a long time now. These problems that you have stated are not really problems for them but if we think about what's really stopping them it's either them being a conservative or traditional investor or their clients are the ones against the idea on pooling their funds in the crypto market, we all have seen statements for conservative billionaires like Warren Buffet against Bitcoin and I think a lot of people in the financial industry is sharing the same sentiments as Warren Buffet.
copper member
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From being interested than investing really it is a long way to go.
Institutional investors are growing but they are not really investing and if the time comes for that they do not invest a lot of money, they are afraid to take the high risk especially for the cryptocurrency assets.

I wouldn't say there is "a long way". Look, the survey says 27% of the US investors invested in cryptos, while it was 22% last year. It's a 5% increase in just 1 year (Keep in mind the survey was realized before the COVID-19 crisis).

How they aren't investing in? The survey says otherwise, more than a third have already done so, and almost half among Europeans. While they ignored the market less than 3 years ago. Roll Eyes

Not a lot of money? They expect to have at least 0.5% of their portfolio allocated in, while it may not seem like much to us, we're talking about hundreds of billion dollars. Usually, we dedicate a low percentage to the risky investments (due to diversity and risk balancing).
We often hear we shouldn't allocate more than 5% to risky investments (or something like that), 1% here, 1% there, etc...

If we consider Blackrock for example, they manage like 7,000 billion USD, if they invest just 1% it's 700 billion injected in the market.
jr. member
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I can see this growing more and more. Once Bakkt becomes more popular it will only increase the amount of institutional investors and fuel more innovation too.
legendary
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The only logical next step to happen is that institutional investors get bigger share of Bitcoin. That will be the fuel for next bull market.

Or the average joe sees the news, believe those investors will buy more, start buying more, pumping the price while the big guy is waiting for a perfect entry to exit the market as usual.

Exit to where?  There is nowhere to exit. Bitcoin is safe heaven. They are allready full of gold. What they will buy shares that are in huge bubble? Real estate that is in huge bubble also. They will keep fiat that will devalue soon. Bitcoin is exit.
member
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From being interested than investing really it is a long way to go.
Institutional investors are growing but they are not really investing and if the time comes for that they do not invest a lot of money, they are afraid to take the high risk especially for the cryptocurrency assets.
hero member
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Quote
1 - Zero or even negative interest rates.  As interest rates are too low, instutional investors are going more and more to stocks.

Correct. This can happen in the first place rather it might be the case in current scenario. Who wouldn't want to invest in such low time IF they have got money in their pockets. I'm pretty sure big guys will lure the market with their crude investment when stocks are going zeros. Economic crisis is first step where thoughtful investment can be done easily to avail profits in future.

No stock is gonna stay zero forever, no stock will stay steady for long time. So it's just about the time when everything resets and people go on earning profits. Loads of it.

So yes, institutional investors outbreak is real.  Cheesy
sr. member
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This is a good sign for traders and holders like us. I feel that this market needs more people to not be strongly controlled from those who have a lot of money. This is actually a very interesting market and it is for people who are interested in high risk and high profit. That's why many people around the world increasingly want to participate in the crypto market. Another fun thing is that newbies who enter the market will be fomo mentally. Bitcoin halving just happened so they will buy bitcoins continuously and then we can sell bitcoin at a high price.  Wink
legendary
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- 75% of Americans and 82% of Europeans are interested in these assets

- 36% of them invested in cryptocurrencies, directly or via derivatives. (27% in The US and 45% in Europe. It 's clear EU is smarter than US, ok just joking, or not)

- 91% of them would like in the next 5 years cryptos represent at least 0.5% of their portfolio.

Refreshing counterpoint to Goldman Sachs' recent report, thanks for sharing! This agrees with my belief that institutions and high wealth investors have been quietly dipping their toes into the BTC market, if not outright accumulating. It's difficult to see the tide turning back at this point.

0.5% or 1% of multi-billion (or trillion) dollar funds is no trivial matter. That will seriously move the market as institutional adoption crosses the chasm from "early adopter" to "early majority." Just imagine when firms like Blackrock enter the market.
full member
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In my opinion true institutionnal will never invest in btc. They will prefer 30 years bonds
legendary
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Growing institutional interest on bitcoin is a good news. While this interest may fuel the next bull run but at the same time, it may also fuel mass adoption that may have lasting effect on bitcoin.

In many countries, bitcoin's reputation is not good as it has been involved in so many hacking incidents, ransomware attacks and illegal money laundering incidents. So common mass in their middle ages usually stays away from it. But that scenario may change if institutional investors pour money into bitcoin. That will bring back the trust factor in bitcoin market.

So in general, it's a good news for the entire community. Growing institutional interest won't make bitcoin centralized, rather infuse more liquidity into it!
legendary
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2 -  but Stock market is too volatile (as we saw in corona virus crisis). This is why they are taking a look at gold and silver, and the most obvious alternative to those is bitcoin.

As mentioned in the OP, I think those investors believe that bitcoin is way more volatile. Double-digit growth or loss is a common occurrence. But I think this is how the market works for now. The risk are higher but it's more rewarding. This is why their holding target is not that big yet, as throwing too much money might cause them a headache.

The only logical next step to happen is that institutional investors get bigger share of Bitcoin. That will be the fuel for next bull market.

Or the average joe sees the news, believe those investors will buy more, start buying more, pumping the price while the big guy is waiting for a perfect entry to exit the market as usual.
legendary
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Growing number of institutionnal investors

The only logical next step to happen is that institutional investors get bigger share of Bitcoin. That will be the fuel for next bull market.
legendary
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bitcoindata.science
I believe institutional investors will continue to come, basically to two factors. Ofc this is just my opinion:


1 - Zero or even negative interest rates.  As interest rates are too low, instutional investors are going more and more to stocks.

2 -  but Stock market is too volatile (as we saw in corona virus crisis). This is why they are taking a look at gold and silver, and the most obvious alternative to those is bitcoin.
You can take a look at this picture just for an example.


source: http://www.worldgovernmentbonds.com/

I believe holding will be very rewarding in a not distant future.
copper member
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Very high numbers, to be honest, it's surprised me. Imagine what the percentages will be in 5 years from now if the trend continues. A result from a survey from Fidelity shows more institutional investors think cryptocurrencies should be added to their investment portfolio.

Quote
“These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class,”

TLTR :

~800 EU & US participated in.

- 75% of Americans and 82% of Europeans are interested in these assets

- Stateless currencies: 25% of Europeans see this as a good aspect Grin

- 36% of them invested in cryptocurrencies, directly or via derivatives. (27% in The US and 45% in Europe. It 's clear EU is smarter than US, ok just joking, or not)

- 80% did it because it's/has
   * uncorrelated to other asset classes 36%
   * innovative technology 34%
   * the high potential 33%

- 91% of them would like in the next 5 years cryptos represent at least 0.5% of their portfolio.

What is stopping them?
- market manipulation
- lack of knowledge
- volatility

Quote
“Investor concerns are largely focused on issues that will resolve themselves as the
market infrastructure evolves,”

https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/institutional-investor-study.pdf
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