Institutional investors are betting bullishly on Bitcoin as the market has seen a growth trajectory for the last four months, according to a recent Diar report.
Although the institutional crypto investment market has been in a slump since mid-2018, it rebounded and maintained a bull run since December. The April 8 report details that institutional BTC products have gone up 15 percent in January 2019, 17 percent in February, 18 percent in March, and 19 percent in April.
“Institutional products have now moved into growth for the 4th month in a row hitting new highs against US-based exchanges as a percent of total trading volume,” Diar noted. “Currently, this is almost 8% more than when Bitcoin hit its price peak in December 2018.”
The report also outlines that the Chicago Board Options Exchange, the first US-based exchange to introduce Bitcoin futures, is significantly losing market share. Grayscale’s Bitcoin Investment Trust (GBTC) has also been experiencing a downturn since last August.
However, unlike its competitions, CME Group has maintained an upward trajectory with few stumbles in between.
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Finance Magnates, earlier today, reported that CME Group has recorded its highest BTC trading volume on April 4 amid the unexpected surge in Bitcoin prices.
Diar’s projections, however, showed that the present market is far from the highest point which was achieved last July after a 24 percent surge in monthly trading volumes.
“While CBOE is by and far this biggest loser, Grayscale’s Bitcoin Investment Trust (GBTC) traded on the OTCMarkets has also lost its dominance,” the report stated.
“At the start of 2018, GBTC accounted for over 50 percent of the market share across the three institutional products, now standing at under 24 percent.”
Can We Trust the Reported Volumes?
Last month, Bitwise Asset Management in a presentation to the Securities and Exchange Commission (SEC), revealed that “95 percent of Bitcoin trading volume is fake and/or non-economic in nature.”
Diar also pointed out rising fake trading volumes in the market and stated: “While long has this been known, its official delivery to the US Securities and Exchange Commission (SEC) marked an important turning point in the perception of how liquid markets really are.”