- Bitcoin manages to gather a surge of institutional support.
- It is not clear what is inspiring the surge as some big companies are incognito when buying into Bitcoin.
- MicroStrategy and Square’s buy was via a Time Weighted Average Price (TWAP) method. The company did not move the market until they launched the news.
Bitcoin accumulates a surge of institutional support
Bitcoin manages to gather a surge of institutional support. The market has seen an increase in investment from large companies.
It is not clear what is inspiring the surge as some big companies are incognito when buying into the coin. Many firms are acquiring Bitcoin but leaving no trace behind.
MicroStrategy and Square’s buy was via a Time Weighted Average Price (TWAP) method. The company did not move the market until they launched the news. Square had stated in their whitepaper with Bitcoin that they used TWAP for 24 hours to avoid price volatility and high liquidity to prevent the risks that come with pricing.
Addresses holding more than 1000-10,000 increased a lot since 2010. There is also a growth in CME that suggests more institutions are supporting Bitcoin.
CME is no.2 when it comes to Open Interest in BTC futures and is strides ahead of other crypto exchanges. It makes sense for institutions to use CME over any other exchange if they are interested in BTC.
The growth in OI on CME is likely to be a result of institutions.
Institutions are evolving with crypto
Institutions are keen to put their teeth into cryptocurrency as a report by KPMG reveals. The KPMG report shows that asset managers, major banks and qualified custodians are going to launch crypto services and products at an institutional level.
