Cryptocurrency Investments Increasingly being Preferred by Most Institutional Investors
Cryptocurrency investment among institutional investors is fast gathering pace with most investors obtaining large quantities of cryptocurrencies through private transactions. Contrary to the past where miners would hold hoard currencies awaiting market uptrends, these days miners are contracted by institutional investors to supply a certain amount of cryptocurrencies.
Recent research by Bobby Cho, head of DHW Holdings LLC at Cumberland responsible for OTC Purchases reveals that institutional investors along with non-person entities are the largest buyers of virtual currencies today obtaining cryptos worth $100,000 and more at a single trade. Additionally, reports from Bloomberg indicate that crypto miners along with large cryptocurrency traders are no longer influenced by market trends; instead, they establish their schedule where they dispose of their coins to contracted investors.
The latest report by Digital Assets Research reveals that DRW Holdings dealt with Over-The-Counter (OTC) asset trades and dealt with assets ranging between $250 million and $30 billion regarding trade daily in April alone compared to the CoinMarketCap that displays $15 billion traded daily in digital currencies. The report also reveals that the global cryptocurrency market was stable despite low over-the-counter trading attributed to a declining cryptocurrency price. The decrease in the market volatility is peculiar to a large number of institutional investors joining the crypto space slowing down volatility.
One example of a huge financial bank known for its immense interest in cryptocurrencies is JPMorgan Chase, the largest bank in the U.S. Despite JPMorgan Chase’s CEO Jamie Dimon calling bitcoin a fraud that won’t end well back in September 2017, the bank announced the unveiling of a blockchain-based system designed to reduce the number of parties required to verify global transactions. JPMorgan is also involved in other cryptocurrency projects such as Quorum. Quorum is based on the popular digital currency Ethereum and is an open-source platform focused on data privacy. The bank is also a pioneer member of the Enterprise Ethereum Alliance and has also partnered with the developers of Zcash, a digital currency.
The exponential growth of the cryptocurrency market is attracting more institutional investors making them more likely to consider cryptocurrencies as a new alternative investment.