New Report: Institutional Investors Prefer Regulated Exchanges for Term Perspective

A new report finds out that big players are investing money on Bitcoin for the long term perspective. The rising institutional trend has witnessed on regulated crypto exchanges even in the times of bearish markets.

ZUBR’s Report

Crypto derivatives trading platform ZUBR published a report in which researchers have written that open interest has “remained consistently higher in comparison to their traded volumes” on regulated crypto exchanges. For instance, Chicago Mercantile Exchange (CME) is the leading one where the open interest is highest which shows that investors have believed over the  top digital asset for the long term.

“This indicates that traders on these venues are increasingly looking at the long-term outlook and aren’t very easily swayed by large increases or decreases in price.”

Over non-regulated trading platforms, the trend is the same, but it is significantly different on regulated exchanges which have won the trust of institutional investors, thus confirming a “long-term bias or institutional investors.”

From the start of 2020 to the end of August 2020, the trading volume of Bitcoin futures reaches a total of $3 trillion, which will easily break previous years’ record.  Almost, on all exchanges, open interest is higher than “trading volume at any point in time.”

CME and Bakkt are at Top

CME and Bakkt, are at the top of the list where the ratio of open-trust to trading is high as these are regulated crypto trading platforms. According to ZUBR’s report, the ratio remained high even during the negative market trend. When Bakkt was suffering badly, CME traders had “the highest levels of open-interest in comparison to traded volume.”

“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,” the report reads.

Not this report advocates the idea of institutional playing in the crypto markets, there are many more reports which have found the same trend. Since 2020, more and more institutional investors have come into the crypto arena. Even many Wall Street figures are now supporting Bitcoin over the US dollar.

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