• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Nexo Logo

Wall Street is Coming to Bitcoin: Here’s Why Crypto’s Institutional Market Just Saw a Massive Turning Point

Samuel Wan by Samuel Wan
2 years ago
in Cryptocurrency news
Reading Time: 2 mins read
Advertisement

Things ramped up a gear today as Bitcoin derivatives platform, Deribit announced full integration of the ClearLoop custody and settlement solution for institutions.

ClearLoop is the brainchild of London-based Copper, headed by CEO, Dmitry Tokarev, who commented:

“ClearLoop, the fruit of this collaboration, allows investors to settle trades instantly, keeps their assets secure and insured in third-party custody, removing concerns about self-custody, all the while eliminating counterparty risk and the associated limitations with volume.”

No doubt, a secure and frictionless off-chain custody solution represents a massive turning point for institutional investors.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Previously, asset managers had to transfer crypto from their secure cold storage wallets into the exchange’s hot wallets to settle and trade. Not only can this be time-consuming, but in doing so, the level of risk is heightened as a result.

ClearLoop and Cooper’s external custody solution makes settlement in seconds. This has the potential to revolutionize the market structure of crypto derivatives, thus driving greater institutional adoption.

Institutional Money is Dominating Bitcoin Volume

Like it or not, institutional money forms a significant portion of the volume in the Bitcoin market. This trend is only set to increase as crypto assets begin to cross into the investment mainstream.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Analysis of data from Blockware Solutions shows that CME volume on December 17 was negligible in comparison to retail traders via Coinbase and Bitfinex.

However, CME volumes have progressively increased over time. So much so that CME volume eclipsed that of Bitfinex and Coinbase for the first time in February 2019.

Blockware Solutions put this down to the 2019 lows with crypto markets, which saw Bitcoin at $3.2k, representing a strong buy signal for institutional money.

This trend continued for a further three consecutive months, until May 19. But June 19, which saw retail investors FOMO in on $14k Bitcoin, creating a spike in retail volume.

All the same, data for the last three months to January 2020 shows CME volume overtake that of both Bitfinex and Coinbase. With January 2020 being significantly dominant over retail traders.

Comparison of type of crypto investors
Source: blockwaresolutions.com

It’s Only a Matter of Time

This, of course, only represents data for three platforms. There is still a general aversion from institutions when it comes to investing in Bitcoin.

The reasons for this are numerous. But a lot has to do with the fact that institutional investors vary widely. The category includes family offices, foundations, pension funds, sovereign wealth funds, banks, and insurance companies. All of which have different attitudes towards risk, not least risk within a volatile and nascent asset class.

The Co-founder of decentralized exchange, Vite Labs, Richard Yan explains that prerequisites such as crypto custody and insurance serve as a sticking point for many institutional investors.

institutional investors are put of from crypto
Source: twitter.com

But thanks to Deribit and Copper, the infrastructure that directly addresses these concerns is now available for institutions.

As much as the die-hard crypto purists dislike this fact, it’s only a matter of time before institutional volumes will consistently outperform that of retail traders.

Tags: btcusdBTCUSDTcryptocrypto derivativesxbtusd
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Related Posts

The Nightly Mint: Daily NFT Recap

The Nightly Mint: Daily NFT Recap

16 mins ago
XRP whales

XRP Whales Boost Accumulation Appetite, Register 2-Month Peak Holding Supply

2 hours ago
KuCoin Exchange Report Shows Growing Crypto Adoption In The US

KuCoin Exchange Report Shows Growing Crypto Adoption In The US

2 hours ago
Bitcoin

Bitcoin Is Consolidating But Is A Rally Near?

6 hours ago

Bitcoin Dominance Remains High As Market Sell-Offs Settle

8 hours ago
Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

12 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

A guide to Capricorn, the first DEX on Cube Chain with hundreds million USD Liquidity Investment

May 27, 2022

Brawltales’ First Batch of NFT is Launching Soon

May 27, 2022

Interest-free Loan, New way of Assets Increase

May 26, 2022

Hoskinsea Partners with Pavia land to Setup A Virtual Headquater On The Metaverse

May 26, 2022

The first free and equal digital country – HyperNation global theme conference was held

May 26, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.