Bitcoin Forum

Binance Research Report Claims That Less Than 7% of Crypto is Owned by Institutions


https://www.newsbtc.com/2019/04/13/binance-research-report-claims-that-less-than-7-of-crypto-is-owned-by-institutions/amp/

What do you think ? Is this true?

It's probably true, because institutions are very conservative, whereas cryptos are hyper-volatile. But another way of thinking about it is how large seven percent is, and the potential for future growth. The groundwork is being laid right now for more institutional investment, which can propel this market to new heights given how small it is compared to other markets.

There is a thread here lately with a title : Do you think Institutions secretly HODL Bitcoin?

Heres the link : https://bitcointalk.org/index.php?topic=5104633.0

I think this thread of yours serve as an answer for the link that i posted above  .

Now what  if  institutions hodl a crypto ?  I think this was a good news and we must be happy for it because this adds to the price of cryptos  although 7% may seem to be small  but thats better than nothing

We have no other data to dispute their claims, if we trust their findings we have to consider that this is a new market and regulations are not in place in majority of the countries and yet having a 7% investment from financial institutions is a big deal, just imagine the amount of money that will be invested into the market when proper regulations and clarity are set in place and consider what the price of bitcoin would be if that happens.

If it's true that the institution is involved in cryptocurrency and owned that percentage then we can't do anything about it. However, we still got no specific evidence to prove it but I guess they are regulating it for their own reasons. It's a big percentage but I'm sure that they have it for a purpose.

This should be glad tidings if it's true because 7% is infinitesimal. It surely will help prevent heavy dumps that may lead to the death of cryptocurrency. We have seen what the little dumps here and there have caused the crypto space already let alone if institutions with a large share were to dump.

I think this is true. If we say 7% we think that this is a small part. But in terms instution that crypto it is too large percentage that bitcoin owned. I will not suprised because of the number of users and investors all over the world. And I am not also suprise if it is going bigger and wider for the next following months and years because many merchant are now accepting bitcoin as a payment so bitcoin's usage will be also increasing.

That data could be true, but I will speculate that it will also changed assuming that Bakkt could be approved and Bitcoin ETF will be given a go signal by SEC.

And eventhough the market is making a positive gains, institutional money is not willing to take that big risk today but I'm sure they are more willing to enter when the market starts to rise again.

it may be the truth but important thing is market is bear for a long time.if there is a fomo, i wonder how much will it be the intitutions percentage.they dont see any reason to enter the market when its bear.

calling it "owned" is stretching it too far in my opinion because most of them don't actually own these coins. for example Binance itself is holding a lot of coins ranging from bitcoin to lots of small altcoins but they do not "own" them they are just holding them because their users are using their centralized platform and have made a deposit in their wallet.

Yes, I think the reason for this is KYC/AML regulations and also having to adhere to other financial regulations and local laws that governs the use of other currencies and/or commodities. Some institutions use Payment processors to bypass these restrictions, so that they do not have to deal with bitcoins directly and they just convert all bitcoins back to Fiat currency.

Once governments define Crypto currency rules and regulations clearly, more institutions will invest in Crypto currencies. They are always a bit behind the latest technologies.  ::)

That is a pretty small number percentage wise, but the actual figures could be way bigger.

Honestly, I am surprised that the institutional investors are investing that much money into cryptocurrencies without the ETF proposals getting approved.

Imagine the price of a Bitcoin if the ETF proposals were approved in this scenario.

I think this might now be true , there are several factors that govern it .

First of all you cannot just put a tag on a wallet that it's a institution or a company, how would you know ?

What if on behalf of the whole institution someone is holding the coins ?

Not everyone wanna come into the light for sure , therefore I don't think I agree with this.

Only a good amount of institute are comfortable in letting everyone know that they are into crypto-currencies and therefore its really hard to define the other half who are into this but they don't really come into the light , so 7% is the comfortable half.

I also think that this is true because institutional investors try to work only with assets with a high degree of security. Typically, these are bonds, shares of well-known companies and only a small proportion of the portfolio can be invested in high-risk assets. And cryptocurrencies are very high risk assets. Especially when you consider that Bitcoin still does not have enough transparent regulation in developed countries. The mechanisms of interaction of cryptocurrency with the existing financial system is only being formed, therefore, mainly enthusiasts and people who are not afraid of the newest invest in cryptocurrency.

that is the inherent problem with all of these speculations that are based on some chain analysis. none of them are reliable enough to be considered a fact. we know that bitcoin is not anonymous but it is still pretty hard and at some point even impossible to link different addresses to persons or  companies.

Just imho but cryptocurrencies will remain volatile until it has a small market cap which could be changed only if institutional investor would invest into cryptocurrencies. At least that's hot it happens in the real world. Most of the fiat money is owned by companies or banks but not common people like you and me. If many different companies would own a decent amount of bitcoins that would give everyone a good volume.

In my view, most institutions are not interested in something with high volatility and risks. So, I believe in Binance for the report. But I guess the objects of the research are their clients only. So, we cannot conclude the report reflects the classification of Bitcoin holders around the world. [IMO]

Well sadly but this is the reality and we cannot deny the fact that institution is being involve in crypto world, by the way this is a good article to read OP I guest this 7% of Crypto is a huge money specially if you hold top altcoin, in this case we can say that institution can manipulate the market.

It could be true, but it will need more research to know the truth. And if those percentage can increase in the future, then we will see the cryptocurrency will grow more than now. The institutional can help cryptocurrency for the adoption process, and somehow, they will attract the passion of the people to come to the cryptocurrency world so people can start investing in cryptocurrency.
I agree that the reverse of the market will happen soon related to the market conditions now. We will see soon the market will rise again and it will attract more people to join in the market.

The findings of the binance research team is right because the group individuals have dominated the cryptocurrency industry and that is why there have been long time of market correction right from 2018 till date the market have been struggling to survive the bear market and chart correction if the institutions have got involved with they access to.large capital the result of the market could have been positive then what we have now.

This is unbelievable, I think the percentage of holding bitcoins of organizations must be greater than the number that Binance published a lot. Because while bitcoin may not be a stable asset, but organizations understand its potential, it is a good asset to invest in the future. So there is no reason they do not hold it, especially when the price of bitcoin is very cheap.

Yeah for me this is true. Binance research team is not just research team they are intended to keep only the facts and they search deeper about the subject. In this case they said that institution owned 7% of crypto. 7% is very large for me. And they will not invest on it if they can't see the potential of crypto in businesses.

Of course I so much believe this report. Institutional investors are usually long term investor. So probably those 7% bought when bitcoin price was very low. So other investors are also waiting for them to buy at a certain rate.

There 'could' be a lot of money coming from institutions if a Bitcoin ETF proposal would be approved. So we have to wait and see, the thing though with this scenario is that it's not on our control.

Maybe those 7% have been in the crypto sphere prior to the peak and didn't go out when the price burst in 2017. And then there's no money coming in from them because of the worsening market conditions. But then again, this ball park number will also fluctuates based on the market, if we see improvements or at least a bull run in the future, I'm expecting it to increased by many folds.

yes, institutions are an important part of the crypto world, especially for Binance. This tells us that the BNB target market is still far away, and requires a very long time. but, even though it is still far from the target, the BNB can already master the crypto market capitalization.

How is it possible that this data is accurate?

Also, there is no mention of whether or not certain bitcoin derivatives are included in this figure, such as bitcoin futures or whatnot, because that's what institutions usually like to deal with as opposed to actual tangible bitcoins. Also, what classifies as institutions? Do certain non-incorporated, but yet high end investors count as institutions?

There is no means of verifying whether this data is legit, at the end of the day. But I certainly wouldn't be surprised if this figure continues to climb in the future because of the fact that a lot of financial firms have started to come into the market during this bear market, though that is not necessarily a good thing in itself.

I was not surprised if that is true, it make sense because the volatility shows that the few controls this space. But I strongly believe that when more institutional investors will get in meteoric rise of price is inevitable anytime soon.

If it's true that less than 7% is actually owned by institutions, then it's a healthy market. There is no fear of big players trying to threaten the general market of dumping big bags or holdings. But am not too sure of the accuracy of this research neither do I equally dispute it. For now, it will be safer for large percentage to be held by active community members than institutions. Since there is yet not a clear cut regulating guidelines on Crypto investment in many nations of the world.

That is pretty huge amount of bitcoin for sure, imagine how much for example all the bitcoin and 7% of that is owned by them how much more if all of the cryptocurrency.

less that 1.26m coins held by exchanges, institutions...

i think not
just looking at the "rich list"

1,000 - 10,000      1871    25.83% (41.84%)
10,000 - 100,000   100      12.77% (16.01%)
100,000 - 1,000,000   5      3.24% (3.24%)

42% of coins are held in single addresses of atleast 1000btc
id say that 42% is not 'individuals'

by the way, predicting the possible rebuttle
if coins are held in a privkey solely under control of an exchange. then the exchange OWNS the coins

Less than 7% is still a lot in my opinion but anyway Institutions don't hold any coins they use funds investments like Greyscale and others, they don't really own the coins. The fact that institutions invest in cryptocurrency isn't so surprising, what is surprising is the percentage of their participation in the market.