Topic: Would institutional investors bother with existing bitcoin exchanges? (Read 748 times)
April 21, 2013, 07:21:03 PM
Good question. Up until now they would probably have to have used Mt. Gox or have to find large sellers on one of the many OTC bitcoin boards. There are now a few sites (Coinlab, Tradehill) offer 'dark pool' trading where large trades can take place without affecting the market price.
April 21, 2013, 05:43:55 PM
Not likely. They would invest through a hedge fund holding either bitcoin alone or a basket of currencies/equities including bitcoin.
A pure bitcoin hedge fund already exists in Malta, holding a significant quantity of bitcoins.
A pure bitcoin hedge fund already exists in Malta, holding a significant quantity of bitcoins.
Ok but that just shifts the question. How does that hedge fund buy bitcoin? Mtgox? And if so, would they really buy millions of dollars worth that way?
April 21, 2013, 09:00:57 AM
Not likely. They would invest through a hedge fund holding either bitcoin alone or a basket of currencies/equities including bitcoin.
A pure bitcoin hedge fund already exists in Malta, holding a significant quantity of bitcoins.
A pure bitcoin hedge fund already exists in Malta, holding a significant quantity of bitcoins.
April 10, 2013, 11:16:02 AM
If say, Goldman Sachs wanted to be the first Wall St entity to get a piece of bitcoin, does anyone really think they will buy on Mt Gox like everyone else?
Seems highly doubtful since they could easily buy without even using an exchange. They'd be better off putting up a webpage saying "We will buy bitcoins for $x, call us or fill out this form". It would take about 20 minutes for the whole internet to know about it. I'm sure they could do even better than that, but certainly beats trusting Mt Gox with tens of millions of dollars.
Seems highly doubtful since they could easily buy without even using an exchange. They'd be better off putting up a webpage saying "We will buy bitcoins for $x, call us or fill out this form". It would take about 20 minutes for the whole internet to know about it. I'm sure they could do even better than that, but certainly beats trusting Mt Gox with tens of millions of dollars.
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