Growing number of institutionnal investors

[dothebeats]

They are just going to keep on coming seeing that the rewards are obviously higher than the risks associated in the current time-frame. Investor confidence is also higher compared to the previous years since more and more of them already knew how the market works, or at least grasped the basic movements of the bitcoin market during their stay. With the way the stock market goes currently, it's not surprising that some institutional investors will look for alternatives, and cryptocurrencies fall on that line. It will be quite exciting to see some of the major players in the traditional markets to express that they are slowly buying and buying all this time since the weight of their pocket can seriously cause sharp market movements on the upside.

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[nancy]

The main question - how many money they are ready to invest. Right now not so much, i guess

[ololajulo]

Have read lots about the institutional investment in cryptocurrency especially in bitcoin, they even do so much to acquire most of the newly mined coins. To me they only help to create the scarcity while the price is still manipulated. It is difficult now to appreciate their investment with the current market state, it does not increase the volume trade as well and money seems not to be flowing in the space. Invariably this looks like a time buying proposal to the space, when the time is ripe the price will go up.

[TheGreatPython]

It’s okay, though sometimes I worry about all these things a bit. I usually feel like we are forgetting the main purpose of crypto, or isn’t there anything wrong with the fact that we are all now seeing Bitcoin as just investment? I am not saying that I don’t like the fact that we can make money, I like that.

But, a lot of people these days are just focused on how much money they can make. And what annoys me is that once they make that money they all leave. Yep, I have seen a few of the so called early investors who became millionaires, most of them will tell you not to buy because things have changed. I don’t think there would be any difference between them and these institutional investors, once they make profit they will sell off. They are afraid to invest because they fear they will not make profit.

[bearexin]

The direction things are going now, we have already killed our dream of Bitcoin being adopted for transaction. It’s just to invest, make your money and leave. But anyway, cryptocurrency is really good and just like a survey that I saw earlier this year, a lot of people liked that cryptocurrency has a low correlation when you compare with other assets.

People has been showing interest for a long time and I can tell from people around me that they are interested in cryptocurrency, but the fear of investing in a volatile asset keeps them to stay away from doing so. But I keep trying to convince them by showing past incredible performances of bitcoins; hope they may adopt bitcoins before institutional funds start in-flowing. If institutions start their play then we need to wait for 4 more years to catch another perfect entry.

[TheUltraElite]

In my opinion true institutionnal will never invest in btc. They will prefer 30 years bonds

You have any proof of the same? I am sure there are newer investors entering the market and even in institutional nature, there are more than one analyst there. Someone will have knowledge of crypto and gradually it will increase in number. So we might see a slow but steady increase in interest in bitcoin from institutional investors.

Point is that I have seen this topic come up back in 2018 and 2019, couple of thread maybe but yeah its an ongoing thing now. Considering the news and the analysis to be correct, we are getting a growing interest in crypto. However I have also seen news articles that promote buying of bonds, gold, ETFs and so on. So you cannot take a single analysis to be complete but rather you need to make sure that you keep bitcoin and you invest in the fiat markets as well. Not doing so is an illogical thing and pure stupidity. I am bullish on bitcoin but for a very long term only. Fiat will be there for the time being and you need to make sure you have its share.

[Thasins61]

Does the report talk about digital or crypto assets? Because there are many reports that use the term digital assets to denote digital currencies.
I would not be surprised if I heard that many rich people have already started investing even a small portion of their wealth in digital assets, but that will not exceed 1% to 5% of the value of their assets.
When institutions and governments move, we will see more demand, and therefore we may find some people advancing more aggressively and investing about 30% or more of their wealth in these assets.

[webtricks]

And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

This money is solely a market money, it won't go for the development of something new or innovative. If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding. I agree that ICOs turn out to be epic fail as the time progressed but still money was flowing for the development of something new, something innovative in crypto domain. And even in the failure, we got some serious break-through in crypto industry. But now this money don't actually gonna give fundamental benefit to crypto industry rather it would disturb (will make more volatile) the crypto market due to excessive leverage play by the big investors.

[LeGaulois]

And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

This money is solely a market money, it won't go for the development of something new or innovative. If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding. I agree that ICOs turn out to be epic fail as the time progressed but still money was flowing for the development of something new, something innovative in crypto domain. And even in the failure, we got some serious break-through in crypto industry. But now this money don't actually gonna give fundamental benefit to crypto industry rather it would disturb (will make more volatile) the crypto market due to excessive leverage play by the big investors.

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

Volatility is also what attracts people to gamble their money in cryptocurrencies, let's be honest. They all expect a pump and dump movement to make cash. If Bitcoin's price was so stable people wouldn't come.

[bitbunnny]

Have read lots about the institutional investment in cryptocurrency especially in bitcoin, they even do so much to acquire most of the newly mined coins. To me they only help to create the scarcity while the price is still manipulated. It is difficult now to appreciate their investment with the current market state, it does not increase the volume trade as well and money seems not to be flowing in the space. Invariably this looks like a time buying proposal to the space, when the time is ripe the price will go up.

Yeah, but how much are these information about institutional investors actually true? Do we have some concrete figures or is this just an impression?
The question is how many of them is making significant investments and what sums are we talking about. I have a feeling that we are talking about hypotetic investments and projected effects, not real ones.

[webtricks]

~snip~

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

To some degree, institutional investors are problem to the market when compared to random individual buying his first bitcoin. When an individual wants to invest in cryptocurrencies, he will place bid at current market price (maybe little less or more) which will contribute organically to the market growth. But on the other side, imagine if someone wrote 5 minutes call options worth $10M and then intentionally bought $20M worth of Bitcoin in an open market so that price drop by 1-2% in next 5 minutes. Everyone who bought call option won't exercise the option because it will lead to loss. Premium paid by the buyers on Option of $10M will become profits of the writer. This is how big players (institutional investors) can easily manipulate the organic growth of unregulated markets like that of Bitcoin.

[exstasie]

And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

In my opinion most BTC holders are speculators, so Wall Street is just joining the ranks of existing retail investors.

Is it good? For price, probably yes, although there is also a possibility that accounting practices like commingled omnibus accounts and rehypothecation will artificially inflate the supply of BTC-pegged derivatives. That would suppress prices on physically settled BTC derivative markets, which due to arbitrage would also suppress spot prices.

If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding.

That was just a limited number of high risk institutional investors and small hedge funds. I'm sure more conservative institutions are focused on BTC.

[iv4n]

"Growing number of institutional investors"

This reminded me on discussions from years ago. Before 3 and more years. It was a discussion about how bitcoin got where it was in that moment with help of people, ordinary people and small businesses, and that was a first wave with a peak in 2017! Next wave will be triggered by institutional investors and big and huge companies and corporations, and that wave can be stronger than all waves before.
Now this is just a discussion we had here, and anyone can agree or disagree with this point of view, it's not matter, I saw some logic in this?

[Heart18]

Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊

[TheUltraElite]

Yeah, but how much are these information about institutional investors actually true?
Do we have some concrete figures or is this just an impression?

We can assume that their number is high because whenever we talk about whales are not talking about individual "retail" investors but hedge funds and capital funds. So these can be considered to be a part of the institutions putting their money or out of bitcoin. Proper numbers are to be taken with a grain of salt, how much of it is true is questionable and often politically influenced but they are there, no doubt about it.

The question is how many of them is making significant investments and what sums are we talking about. I have a feeling that we are talking about hypotetic investments and projected effects, not real ones.

Now if they are whales then the investment amount is significant. JP Morgan made Bitcoin purchases and I am sure the rest of the banking sector did too. So it is not something to push under the carpet, they will become significant more with time.

[Mauser]

~snip~

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

To some degree, institutional investors are problem to the market when compared to random individual buying his first bitcoin. When an individual wants to invest in cryptocurrencies, he will place bid at current market price (maybe little less or more) which will contribute organically to the market growth. But on the other side, imagine if someone wrote 5 minutes call options worth $10M and then intentionally bought $20M worth of Bitcoin in an open market so that price drop by 1-2% in next 5 minutes. Everyone who bought call option won't exercise the option because it will lead to loss. Premium paid by the buyers on Option of $10M will become profits of the writer. This is how big players (institutional investors) can easily manipulate the organic growth of unregulated markets like that of Bitcoin.

Not sure if I really understand this, but why would the prices drop 1-2% if someone buys $20M worth of bitcoins? Shouldn't the price go up since a lot of sell orders will be filled instantly in the exchange? Sorry if I am missing something here but having institutional investors invest heavily into crypto currencies should force prices upwards, or not? Also, why would you want to exercise your options? Just hold them until prices go up even further.

[glowing10]

Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊

This is a good thing that more and more people or investors we have in the crypto the demand will keep rising and leading to the rise and use of bitcoin in the globe will continue to rise. Also we need to thing one thing in mind that some of this intuitional investors may be for temporary phase as they sees the opportunity now in the bitcoin they enter and once they see the opportunity in other asset or somewhere else they will exit form here and invest elsewhere.

[DoubleEdgeEX]

The more use it, the better. And if the big players use it, it just shows that they have a certain trust in it. Fidelity and Vanguard already commited and Goldman is more like doing it beneath the surface - https://www.forbes.com/sites/youngjoseph/2020/06/06/goldman-sachs-tells-clients-bitcoin-isnt-good-but-it-seems-to-secretly-like-it

The trust slowly moves from fiats to cryptos and that just can be a good thing

[$crypto$]

Yes, this growing investors can be seen all over the world and they are taking risk in joining in this Market because they believe that investing and trading in Bitcoin will add more wealth for them. Just like what I believe in 😊

This is a good thing that more and more people or investors we have in the crypto the demand will keep rising and leading to the rise and use of bitcoin in the globe will continue to rise. Also we need to thing one thing in mind that some of this intuitional investors may be for temporary phase as they sees the opportunity now in the bitcoin they enter and once they see the opportunity in other asset or somewhere else they will exit form here and invest elsewhere.

Of course, more and more requests will move the price of bitcoin on the exchange will experience a surge, but investors are also thinking about the risks of how to invest with bitcoin now have begun to consider because it is difficult to predict whether investing in bitcoin will experience profits or indeed vice versa, because prices do not can be sure to be stable during its course there must be a more severe crash before because of whale.
Therefore some companies still consider investing in bitcoin with such a reason.

[Antinass]

investors will start getting rid of their investments when the failures happen and start losing or selling the investments.
They hide from the economy and the volatility, so they diversify and invest in many areas, but when life returns to normal they will return again to safe investments.
Lack of knowledge of the things that will be treated by time
Volatility requires a lot of money to stabilize prices.