Bitcoin Holding in the sights of institutional investors

Institutional investors are betting mainly on Bitcoin’s holding company instead of fiat money, says a report by ZUBR.

Professional and institutional investors are planning to increase their moves towards crypto-currency. This is indicated by a study carried out by the analysis firm ZUBR. According to the report, Bitcoin Holding is emerging as a top option.

The highlight of the case is that investors are more interested in pioneering cryptomoney than fiat money. This is despite the common tendency to consider digital currencies as high risk assets due to their volatility.

Investing in Bitcoin, rather than traditional denominations, can have several readings. The most common among cryptomoney enthusiasts, is the tendency for fiat money to depreciate, in the face of a shortage of Bitcoin, which would guarantee a permanent upward trend.

Bitcoin Holding is presented as a lifesaver

Bitcoin’s future markets are becoming rallying points for institutional investors. As such, institutional investors are participating in derivatives, helping to bring Bitcoin and crypto-currencies into the investment arena.

Another aspect that should be highlighted is that the Bitcoin holding company that investors are using is of a particular type, the „physical form“. This means that the amount of Crypto Method coins are delivered directly to the investor, as opposed to other forms in which fiduciary coins equivalent to Bitcoin are delivered.

To get an idea of the rise of the Bitcoin holding company among these investors, last year’s figures should be highlighted. As a result, in 2019 alone, trading volumes in crypto-currencies exceeded USD 4 trillion, according to the report.

Who are these institutional investors?

Those financial professionals who invest the money of others (individuals or organisations) are known as institutional investors. Specifically stock exchanges or hedge funds, among others.

Of these, the report explains, one of the most interested in Bitcoin Holding has been the Chicago Mercantile Exchange (CME). Likewise, the participation of a crypto-derivative firm managed by International Exchange is highlighted. These are the two largest institutions in terms of trading volumes at Bitcoin.

On the other hand, Wall Street is another of the places where high volumes of Bitcoin are being traded in the Holding modality. Last August, another firm, Chainnalisys, highlighted that on the New York Stock Exchange Bitcoin is „accumulating en masse“, in a trend that „is just beginning“.

At that time, the mentioned firm gave figures that recently, 90% of the crypto-currency transfers in North America were made in professional environments.

Impressive figures

It is important to highlight the terms with which the ZUBR report qualifies the growth of Bitcoin Holding during this year. It assures that these are „impressive figures“, taking into account that in August the company had already reached $3 billion in funds traded in Bitcoin.

At the same time, he highlights that monthly volumes amount to $378 billion. All this translates into a 60% higher percentage average than the second quarter figure.

„A correlation so visible to Bitcoin, that it can be considered one of the decentralized assets that attracts all types of investors, whether institutional or retail. This is a sign of healthy and market maturity,“ the report said.

Data to take into consideration

  • Between September 2019 and September 2020, US$4 billion in trading funds were moved at Bitcoin.
  • Currently, more than USD 378 billion is moved monthly.
  • The places where Bitcoin Holding is most active are the Chicago Mercantile Exchange (CME) and the crypto-derivative firm Bakkt.
  • Interest in trading Bitcoin futures from institutional investors may be related to pessimistic fiat money forecasts.