Stability in Crypto Market Suggests Massive Accumulation by Institutional Investors

Most investors in the crypto market are hoping for the entrance of institutional investors to start the next bull run.

Recent stability of major digital assets like Bitcoin suggests that institutional investors are already actively involved in the cryptocurrency market.

It is entirely possible, given the data provided by large over-the-counter crypto brokerages and Wall Street research firms, that institutional investors have already entered the crypto market and have started to accumulate massive amounts of crypto in recent months.

Speaking to Bloomberg, Bobby Cho, global head of trading at Cumberland, the Chicago-based cryptocurrency trading unit of DRW Holdings, a firm that handles large buy and sell orders of crypto in the OTC market, stated that the accumulation of crypto by institutional investors led the market to demonstrate a record high level of stability in the past two months.

"One of the biggest criticisms of crypto by institutional investors has been the volatility. Over the last four to six months, the market has been trading in a very tight range, and that seems to be corresponding with traditional financial institutions becoming more comfortable diving into the space".

He also added that a significant portion of the OTC deals which DRW have processed throughout the past six months were done during Asia hours, suggesting that either miners who are based in Asia are selling large amounts of crypto or buyers from markets like Hong Kong, China, Japan and Singapore are accumulating crypto.

Cho emphasized that the narrative of "Wait until institutional investors enter the market" is no longer relevant because institutional investors have already entered the market.

"Before institutional firms were actively trading crypto or heavily involved bitcoin price differences between exchanges varied as high as 4.5%".Yale is an Institutional Investor.

Previously, billionaire investor Mike Novogratz stated that the entrance of pension funds, academic institutions, and large-scale financial companies into the market will trigger FOMO amongst institutional investors.

With Yale already invested in the market and OTC volume increasing at an exponential rate, it is difficult to dismiss the claim that institutional investors are already in the crypto market.