BTC, the growing interest of institutional investors
2 min readDue to the growing interest of institutional investors, the dominance of large BTC transactions increased from 30% in 2020 to more than 65% in 2021.
In its chain report, the Glassnode analytics platform summarized its data on the largest cryptocurrency and revealed that large transactions dominate BTC.
“The dominance of large BTC transactions (> $ 1 million) rose from 30% in 2020 to more than 65% in 2021. This reflects the growing share of institutional interest and capital transfers across the #BTC network.”
“Since September 2020, the dominance of these large transactions has increased from 30% to 70% of the total value transferred. […] This week, the dominance of USD 10 million + followed with an increase of 20% dominance supporting price growth. “
While transactions of large institutional investors continue to grow, transactions below $ 1 million are declining, with dominance falling from 70% to about 30% -40%.
Capital from institutional investors prefer BTC
Dominating on the BTC scene are strategies that are usually not attractive to smaller traders in this ever-expanding cryptotrm. However, institutional investors prefer them.
In August 2021, JPMorgan Chase launched its own BTC fund. The largest bank in the United States thus began offering new BTC products to its private bank’s clients for the first time.
Not only that, but the BTC ETFs, which have been postponed on American soil for years, were approved in Europe this month. Namely, Melanion BTC Equities Universe Ucits ETF, listed on Euronext Paris.
ETFs are financial instruments that make it easier for institutional investors to access cryptocurrencies.
Not to mention the great success of GBTC shares, which still attract large investors. From banking giant Morgan Stanley to investment rock star Cathie Wood and many more.
