As per JPMorgan Chase (JPM), one of the United States’ largest bank, the Bitcoin (BTC) industry has shown a considerable change since 2017, majorly due to the increase in institutional interest in the ecosystem, as reported by Bloomberg on June 15.
The publication quotes, a report from Nikolaos Panigirtzoglou, the managing director of a global market strategy wherein the researches examined the recent phenomena surrounding cryptocurrency exchanges.
Bloomberg further cites JPM, noting that if only 5% of May’s $725 billion number is accurate than BTC’s trading in May was around $36 billion. Moreover, according to Bitcoin futures provider CME Group, May have had the best performing month on record with implied USD value topping $500 million.
Another investigation by asset manager Bitwise published in March and again last month revealing a significant amount of trade volume reported by exchanges was likely fake. The volume difference between trading on exchanges when compared to volumes in bitcoin futures suggests that institutional investors incline towards the cryptocurrency ecosystem as stated by JPM said. The report summarizes:
“The overstatement of trading volumes by cryptocurrency exchanges, and by implication the understatement of the importance of listed futures, suggests that market structure has likely changed considerably since the previous spike in Bitcoin prices in end-2017 with a greater influence from institutional investors.”
At the end of June, CBOE, the provider of the first-ever future, close down its last contracts in line with a decision taken in March. Meanwhile, Bakkt, the institutional ecosystem from New York Stock Exchange owner Intercontinental Exchange, recently revealed that it would begin testing its own futures offering in July.
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