Institutional investors are increasingly basing their trades on the long-term outlook of Bitcoin and are no longer easily put-off by price volatility, according to crypto derivatives exchange ZUBR.
In a new report titled, “Institutional Investors Turn ‘Hodlers’ on Bitcoin Futures Market,” ZUBR analyzes regulated exchanges like the Chicago Mercantile Exchange (CME) and the Bakkt, and compares their investment behaviors during bull and bear markets.
ZUBR says that institutional traders on regulated platforms are looking to hold Bitcoin based on its long-term outlook, noting that there has been more ‘open interest’ compared to volumes.
“The writings might not be on the wall yet for full-scale institutional interest. But there is a clear long-term interest in the cryptocurrency on regulated exchanges that has not been seen before.”
Trading volumes for Bitcoin futures hit over $4 trillion in the past year, says ZUBR, with average monthly volumes nearly 60% higher than the previous average of 2019. The surge in open interest is mainly seen on the CME, though the crypto derivatives company Bakkt is not trailing far behind.
ZUBR believes long-term interest in Bitcoin on regulated exchanges can further increase as more institutional investors enter the market.
“What is clear, is that regulated exchanges have attracted a different calibre of traders to the market potentially shifting the future dynamic of the cryptocurrency into what believers have wanted all along – displace gold.”
