What Happened To Bitcoin’s Promised Influx Of Institutional Investors?

[djcaoile1205]

The next big bitcoin bull-run was supposed to be led by an incoming swathe of institutional money. Lured in by potential profits unheard of in traditional investment products, and reassured by trusted brands offering institutional-grade custodial solutions. So what happened?
Read the article guys and give your opinion:

https://bitcoinist.com/what-happened-to-bitcoin-promised-influx-of-institutional-investors/

[gentlemand]

Why would 'institutional investors' pile in when no one else is interested?

There are much better avenues for them than ever before. They're not going to show up en masse until real people do as well.

The narrative that they're chomping at the bit if only there was a way and they'll create a bubble out of nothing just for us has always been a daffy one. They prey off stuff like that. They don't scratch build it.

[squatter]

Why would 'institutional investors' pile in when no one else is interested?

There are much better avenues for them than ever before. They're not going to show up en masse until real people do as well.

Isn't that what "smart money" supposedly does -- buy when there is blood in the streets and all that? It stands to reason that they might not wait for a bubble before dipping their toes in.

Bakkt is doing thousands of BTC per day in volume now, despite the market lull. That seems to suggest that institutional interest isn't totally dead.

[Pearls Before Swine]

The next big bitcoin bull-run was supposed to be led by an incoming swathe of institutional money.

That's news to me.  Before bakkt was launched there was a lot of discussion about how the market was going to react, and the upshot of all that was just mass confusion.  There may have been some who were expecting a huge boom, but there were others worried that institutional fiddling with bitcoin might crash the market.

Those institutional investors are *not* buying bitcoin outright.  They speculate on its price thru derivatives, ie, options and futures.  That's 'paper bitcoin' and it doesn't affect the price at all apparently, so I'm not sure what was to be expected in the first place.

[bdivrik]

The price of Bitcoin rose too much in December 2017. Everyone around the world started talking about bitcoin. Now popularity has declined. Corporate capital is afraid to invest in a commodity that is rising too much. We attributed the decrease in bitcoin price to this reason. Or that was our way of being distracted. Now where are these corporate investors ??

[squatter]

Those institutional investors are *not* buying bitcoin outright.  They speculate on its price thru derivatives, ie, options and futures.  That's 'paper bitcoin' and it doesn't affect the price at all apparently, so I'm not sure what was to be expected in the first place.

Not all derivatives are the same. The CME and Cboe futures markets don't affect the price because they have no direct relationship with real bitcoins, real supply and demand. Buyers and sellers are just betting against one another regarding the spot market price.

Bakkt offers physically deliverable contracts which are very different. Bakkt holds custody of real bitcoins, which can actually be deposited and withdrawn by buyers and sellers. This means that if/once Bakkt has enough market liquidity, it could actually lead the spot market instead of just following like CME and Cboe.

[lighpulsar07]

The price of Bitcoin rose too much in December 2017. Everyone around the world started talking about bitcoin. Now popularity has declined. Corporate capital is afraid to invest in a commodity that is rising too much. We attributed the decrease in bitcoin price to this reason. Or that was our way of being distracted. Now where are these corporate investors ??

Well the reason of epic bull run of 2017 is FOMO (fear of missing out) i think that it started when the price bitcoin rose to 3k and from there it rose very quickly and reached to 20k and the reason why bitcoin crashed due to people can't affird it anymore.

[gentlemand]

Isn't that what "smart money" supposedly does -- buy when there is blood in the streets and all that? It stands to reason that they might not wait for a bubble before dipping their toes in.

Bakkt is doing thousands of BTC per day in volume now, despite the market lull. That seems to suggest that institutional interest isn't totally dead.

I'm sure that's what a reasonable number are up to.

But the expectation here is usually that the moment the starting gun is fired they're instantly going to push the price up $50,000 and keep pumping until the universe explodes. There've been about 20-30 starting guns now. It's been guaranteed since about 2013.

[HardFacts]

The next big bitcoin bull-run was supposed to be led by an incoming swathe of institutional money. ....

Everyone will be asking the question " What Happened ? " one day when bitcoin goes down in value to its intrinsic value of near zero  🤣🤣🤣🤣

Any smart, rational person would be paying very careful attention to all the promises, predictions, etc that never come true.   You guys should be asking what happened a lot more often, and not trusting people that make bad predictions and promises.

You can ignore reality, but you can not ignore the CONSEQUENCES of ignoring reality....

Hard Facts

[darkangel11]

Are you really giving us a random article as an example that it was supposed to be a Bitcoin season now? Who promised you this? Some journalist?
If there really was an influx of institutional investors how would you confirm or deny it?
What if institutions came in to short?
What if institutions bought but those who bought in a bubble over 15k sold and it equalized things?

[alani123]

Institutional investors want to put some of their money (a very small chunk) to experiment with the speculation of cryptocurrency, but without actually touching any crypto. They use derivatives for that and thus the crypto market sees no direct benefit as oftentimes those products have too much of a disconnect from the spot market and their settlement doesn't affect prices much. There now are quite a few derivative products and they're getting decent volumes, but BTC prices aren't seeing any advantage from that obviously. The institutional investors keep coming but as long as their money doesn't touch crypto we won't notice much of a difference.  

[taufik123]

The price of Bitcoin rose too much in December 2017. Everyone around the world started talking about bitcoin. Now popularity has declined. Corporate capital is afraid to invest in a commodity that is rising too much. We attributed the decrease in bitcoin price to this reason. Or that was our way of being distracted. Now where are these corporate investors ??

Corporate investors are still holding themselves back to enter the bitcoin market. They know the current market situation is still not right. Large companies are indeed afraid of commodities or markets that rise and fall too sharply like bitcoin. There will be times when institutional investors will come in and enliven the bitcoin market, so that the price of bitcoin will rise again.

[gentlemand]

Corporate investors are still holding themselves back to enter the bitcoin market. They know the current market situation is still not right. Large companies are indeed afraid of commodities or markets that rise and fall too sharply like bitcoin. There will be times when institutional investors will come in and enliven the bitcoin market, so that the price of bitcoin will rise again.

It's the type of thing they love. Not every market has to be steady. Forex is filled with insanely violent moves when you include leverage and that's one of the world's biggest markets.

It's still only ten years old. Certain markets are thousands of years old.

It's us lot who are the twitchy kiddies in a hurry.

[Sadlife]

The bullrun is purely speculation right now, in fact the price might move down bakkt was supposed to make it happen but unfortunately it was not backed up by bitcoin but by fiat. Bakkt is a product of the same company behind New york stock exchange. The cash settled bitcoin futures has a negative impact on the bitcoin and crypto price in order for bitcoin to gain from this it needs a P2P transaction not bitcoin to cash conversion.

[Wintersoldier]

The bullrun is purely speculation right now, in fact the price might move down bakkt was supposed to make it happen but unfortunately it was not backed up by bitcoin but by fiat. Bakkt is a product of the same company behind New york stock exchange. The cash settled bitcoin futures has a negative impact on the bitcoin and crypto price in order for bitcoin to gain from this it needs a P2P transaction not bitcoin to cash conversion.

I have read some articles just right an hour before, but I couldn't see it right now. It states that the market will be in a big dip if it breaks the support level at 7400 dollars. In this regard, it is not always the news about institutional investors that could be considered but also how the market behaves and how people read and perceive the market. If you are in believing to gaining profits in investment, then you don't just need to rely on the investors but also to consider doing not just research but analyzation of how the market behaves.

[pooya87]

Read the article guys and give your opinion:

lol. you should ask this from the same authors of the same article in the same website!
they were the ones promising ridiculous things such as institutional investors rushing in to buy bitcoin. now they are saying what happened as if it were someone else making those predictions...

the reality is that the adoption is happening but it is not something that could happen over night with a huge influx of investors, specially institutional investors. not to mention that for the past year price has been rising slower than usual for the most part (except the 2 jumps that we had price went up slowly from $3000 to $13000). let the big rallies begin in 2020 and then see what the real influx means.

[avikz]

The next big bitcoin bull-run was supposed to be led by an incoming swathe of institutional money. Lured in by potential profits unheard of in traditional investment products, and reassured by trusted brands offering institutional-grade custodial solutions. So what happened?
Read the article guys and give your opinion:

https://bitcoinist.com/what-happened-to-bitcoin-promised-influx-of-institutional-investors/

Probably, we are not seeing the kind of influx of institutional investors in crypto market the way we had envisaged it, but there are other reason to it which is completely overlooked by the article author! And that is the "lack of regulatory framework" around cryptos among other reasons! Here institutional investors doesn't necessarily mean only US based corporation, rather it talks about global enterprises doing business worldwide. 

US has their own crypto guidelines, even Japan has also provided the same. But what about others? Majority of the countries are still confused about their next move towards crypto! The number of global enterprises from such countries are staggering and they are effectively discourage in investing in cryptos due to the lack/absence of regulatory framework. And that's what is hurting the growth of institution focused hedge funds or even closing them down!

We all have to remember that Majority of the African and Asian governments are tax terrorists! They look at the global enterprises as a cash cow and want to milk them as much as possible! Without clear guideline around cryptos and with such mindset of the governments, majority of the business organizations have chosen not to foray into the unknown water like crypto market. The result is now visible in naked eye!

The author should have mentioned this practical challenge! 

[jseverson]

I'm not sure where exactly they are, but even traditional financial entities are essentially expecting them by preparing custodial solutions for them:

Bakkt expands into custody
Fidelity launching custodial services

As to whether they simply want first-mover advantage or is actually catering to already-existing demand out there, us small players can't really know yet. I'm taking it as a positive sign on that end though.

[bitcoinguy111]

www.hbdm.com is a good place for crypto to crypto leverage and margin and physically settled bitcoin.

I think people expected a huge boom in the market but It actually had the opposite effect.

IN REALITY - all bitcoin should be physically settled, but its not and that's where it went wrong there isn't a scarcity of paper back bitcoin which is why your not seeing a jump in price.

The institutional paper stuff you see really hurt the market actually.

Think about how the people print money and how inflation occurred its the same thing. I am hoping the paper settled contracts go away.

[DreamStage]

It is just much effort is needed to make such investment shout out on the price value.
There are so many people willing to withdraw now rather than wait for an upswing due to some recent news.

This is the same thing that happened with government's investments over the past 5 months when they previously mentioned they would invest in it as well for pension funds or wtv.
Till now there is only fuzz about it and nothing concretely approved.