Institutional Investors suffer from FOMO? Huge inflow in Q3 :o

[weidex]

Institutional investors are indeed buying according to new report for Q3.

Q3 has been phenomenal for institutional investors but they did not create the pump – they FOMOed in right after it (July 2019). This can be seen in the last Digital Asset Investment Report Q3 by Grayscale.

Some interesting facts become clear from the report:

-   A huge inflow of money in crypto in Q3 2019 – 250 million $ - the biggest number Grayscale have ever achieved
-   Invested mostly in BTC but also huge increase for ETH, decent amount of ETH Classis and insignificant amount of other alt coins
-   Most of the investments came in July 2019 after the big pump. Hence, institutional investors, which are 84% of all investors, FOMOed in after the big pump.
-   47% USA investors vs. 53% Offshore investors 

https://grayscale.co/wp-content/uploads/2019/10/Grayscale-Digital-Asset-Investment-Report-Q3-2019-October-2019.pdf

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[TGD]

That's not the total money that institutional investors throw on crypto. Most of there transaction was over the counter. They are buying huge chunk of BTC behind the government radar. Simply to avoid paying tax and there is limitation on depositing FIAT in exchange.


They didn't suffer from FOMO if they invest around July 19 because they bought BTC in discounted price.

[Jating]

I will just repeat what I have been saying about institutional investors, they have been in the market ever since, perhaps we really didn't notice it because we are in a bull run in 2017. But it's pretty obvious that they have been inside longer than anyone think of.

And this report reinforcement my belief, that this phenomena although not that evident because they maybe fronting some hedge fund company to buy for them, but they are definitely in the crypto scene as early as 2015-2016.

[weidex]

That's not the total money that institutional investors throw on crypto. Most of there transaction was over the counter. They are buying huge chunk of BTC behind the government radar. Simply to avoid paying tax and there is limitation on depositing FIAT in exchange.


They didn't suffer from FOMO if they invest around July 19 because they bought BTC in discounted price.

Yes, it is not the total money - it is just a report from Grayscale. Still there are some interesting implications.

July 19th BTC was already above 10k - the big pump has already started.

[ecnalubma]

I think FOMO effect is better catalyst than any other catalyst that weve been waiting for, It seems that it can influence the market more and can make huge pumps in short term than waiting formal announcements from futures exchange companies. Though institutional investors are everywhere and only waiting for good opportunities.

[o48o]

I am baffled on their interest on making Ethereum classic trust and Horizen trust. I don't want to live in a fallacy that i know better then their experts about the subject so i am assuming that there's more to those then it looks from the surface. But i am still pretty sure i could think safer bets and have no idea why they even looked at those. I wonder where they hired their advisors from... Either way. Thanks for the link, it was interesting.

[tomahawk9]

-   Invested mostly in BTC but also huge increase for ETH, decent amount of ETH Classis and insignificant amount of other alt coins

This is actually a pretty damning report for alts, it's pretty much saying that smart money doesn't care that much about the altcoin market, at least if you compare the % of money that went into btc and eth, the latter doesn't represent the entire altcoin market. In other words, in the long run, most of the altcoin market is doomed since retail investors are unlikely to pour money into a market that smart investors are completely avoiding.

I'd actually be pretty bummed out after knowing that the only way my altcoin stash (if I had any) will pump and reach new ATH's is if a coin that I don't particularly hold (btc) skyrockets in value, might as well just shift to btc completely.

[r_delossa]

What happened with Bakkt then? I believe it was the best indicator of how institutional investors are interested in crypto currencies and the outcome was really disappointing. 20 BTC is nothing more than a joke.

[makishart]

What happened with Bakkt then? I believe it was the best indicator of how institutional investors are interested in crypto currencies and the outcome was really disappointing. 20 BTC is nothing more than a joke.

that needs more time and do you think if you can build rome just in a day?
I remember grayscale is also starting from a little volume and remember bitcoin future has also started from small volume.
But right now something bad happens with crypto and bitcoin has already traded below 8k again.
It's not an indicator which was having high accuracy to determine how much institutional investors are joining crypto but at least it gives us more about crypto becomes more popular.

[yangongear]

I know some whales usually buy a large amount of BTCs in the black market, and they will have discount for that. The inflow that statistically, I think it comes from controlled sources of money, we don't know the source from OTC market.

[BitHodler]

I know some whales usually buy a large amount of BTCs in the black market, and they will have discount for that.

I doubt it unless they have their ways of mixing the coins to such degree, that these whales can dump their discounted coins on a fiat exchange to reap the fruits of their extremely risky investment.

Do you have any proof of this btw? I'm curious. I'm very sure stolen coins are being sold with a heavy discount, as it happens with anything non related to crypto in a similar fashion, but there is no way for me to actually prove it.

As for GBTC, it doesn't really surprise me that there is still money flowing into it---the amount of marketing Barry Silbert and his fellow co-shareholders do to attract institutional capital is next level. Definitely something to respect.

[poornamelessme]

-   Invested mostly in BTC but also huge increase for ETH, decent amount of ETH Classis and insignificant amount of other alt coins

This is actually a pretty damning report for alts, it's pretty much saying that smart money doesn't care that much about the altcoin market, at least if you compare the % of money that went into btc and eth, the latter doesn't represent the entire altcoin market. In other words, in the long run, most of the altcoin market is doomed since retail investors are unlikely to pour money into a market that smart investors are completely avoiding.

I'd actually be pretty bummed out after knowing that the only way my altcoin stash (if I had any) will pump and reach new ATH's is if a coin that I don't particularly hold (btc) skyrockets in value, might as well just shift to btc completely.

I wouldn't expect institutional investors to put that much into alts. There will be some who put money into big (and new alts) ... like if Libra ever gets going, or Gram, or coins like that. But small cap alts? I don't see that happening. But that doesn't mean such coins may not be profitable, they sure went up plenty last time without any institutional investing. I wouldn't expect to see new ATHs for the majority of coins however -- those prices were just utterly insane.

Depends on what you expect. If you bought in at crushed alt prices, I can see some being profitable eventually. For all we know they will bump up a bit pre-btc halvening and therefore makes sense to hold for now. Or they'll just smushed further...

Another reason why institutional investors might not be putting money into alts is simply they aren't offered outside of regular exchanges. Grayscale doesn't have things like a Monero Trust, or a Dogecoin Trust, for instance. What I'm kind of baffled about is why Grayscale has a ETC trust -- weird choice there. I suppose a top 50 or 100 coin trust could make sense though, sort of like a coin index -- that could be of some interest, and wouldn't require an institution to explain how they just invested all of their crypto money into a coin with a dog meme.

[bigcash2011]

Even BAKKT investments are increasing steadily which is a really positive sign and definitely shows the growing demand and interest which will also impact the value positively and hopefully will pave way for next big bull run.

[3DBrushes]

That's not the total money that institutional investors throw on crypto. Most of there transaction was over the counter. They are buying huge chunk of BTC behind the government radar. Simply to avoid paying tax and there is limitation on depositing FIAT in exchange.


They didn't suffer from FOMO if they invest around July 19 because they bought BTC in discounted price.

Let's assume that your claim is actually true. How can someone avoid income taxes for ever? One day or the other he has to show is full transactions details and pay his income tax with a penalty.
I think nobody can leave their full asset in crypto only as this is too much volatile.

[TGD]

That's not the total money that institutional investors throw on crypto. Most of there transaction was over the counter. They are buying huge chunk of BTC behind the government radar. Simply to avoid paying tax and there is limitation on depositing FIAT in exchange.


They didn't suffer from FOMO if they invest around July 19 because they bought BTC in discounted price.

Let's assume that your claim is actually true. How can someone avoid income taxes for ever? One day or the other he has to show is full transactions details and pay his income tax with a penalty.
I think nobody can leave their full asset in crypto only as this is too much volatile.

Government can't monitor person to person transaction. Especially if the transaction occur in the 3rd world country or some-kind the law is not that too strict.

[TrevorS]

The reason that during the July pump the price did not go further is the lack of FOMO. Large players decided that raising the price above $ 13k is not reasonable due to the fact that too little new money has come to the market. Therefore, they began to sell part of Bitcoin, taking profits, lowered the price, and now they are gaining even more positions in Bitcoin and some altcoins. The next major pump is probably being prepared, but when it will not be known, it is possible by the end of the year or at the beginning of 2020.

[yangongear]

I doubt it unless they have their ways of mixing the coins to such degree, that these whales can dump their discounted coins on a fiat exchange to reap the fruits of their extremely risky investment.

Do you have any proof of this btw? I'm curious. I'm very sure stolen coins are being sold with a heavy discount, as it happens with anything non related to crypto in a similar fashion, but there is no way for me to actually prove it.

As for GBTC, it doesn't really surprise me that there is still money flowing into it---the amount of marketing Barry Silbert and his fellow co-shareholders do to attract institutional capital is next level. Definitely something to respect.

Of course you know that if you dump a large amount of BTC on exchange, its price will drop, so I think It is not easy to benefit from buying BTC from the black market. And yes, if it's dirty money, we will have more discount, but higher risk if exchanges track the source fund.

[pgbit]

Ofcourse they suffer from FOMO too because they are human, everybody has been anticipating the altszn and many institutional investors are hoping to get in at the beginning of the pump so that they could make the most profit, infact they are anticipating it more than the average Cryptocurrency Enthusiast because they have much more money to invest and so they are hoping to make much more profits, the last one didn't work out, let's see if the next bullrun would trigger the altszn.

[knuckey]

I think institutional investors want something tangible, useful for their community and have a promising future. They not only hope to be quickly listed on the exchange, pumped, profit and leave it, but institutional investors want a prolonged profit.