Insurance Giant Sees Bitcoin As A “Store Of Value” And A “Potential For Significant Price Appreciation”

Insurance Giant Sees Bitcoin As A “Store Of Value” And A “Potential For Significant Price Appreciation”

MassMutual CIO says it would take multiple market cycles to determine if Bitcoin serves as an inflation hedge. Meanwhile, Billionaire private equity investor Orlando Bravo asks, “How could you not love crypto?”

Billionaire private equity investor Orlando Bravo revealed that he is a Bitcoiner and is “very bullish” on cryptocurrency.

“How could you not love crypto?” said Bravo at this week’s Delivering Alpha conference on CNBC.

Bravo is the founder of Thoma Bravo and has a net worth of $6.3 billion. His firm has invested in the crypto derivatives platform FTX. On Wednesday, he shared that he personally owns Bitcoin.

“Crypto is just a great system. It’s frictionless. It’s decentralized. And young people want their own financial system. So it is here to stay.”

“For me, it’s pretty simple. More people are going to use it in the future than today, and it’s going to be more established. Institutions are just beginning to go there, and once that happens, I think it will increase significantly over the years. I’m very bullish.”

According to Bravo, regardless of what protocol or system one is building on, the underlying blockchain technology can be “very powerful” and “provide better use cases than data-based software.”

New And Still Undergoing Price Discovery

Much like Bravo, Chief Investment Officer of MassMutual, an insurance company with $616 billion assets under management, is bullish on the future of cryptocurrencies.

In a LinkedIn post titled “Bitcoin and beyond: evolving for the digital world of tomorrow,” published on Thursday, ​​Tim Corbett talked about Bitcoin has the potential of being a store of value over the long term.

MassMutual first ventured into cryptocurrency last year with an investment in Bitcoin for its General Investment Account (GIA).

“We have come to believe that cryptocurrency and the blockchain ecosystem have the potential for significant growth and transformation across our industry, amongst others, in the years to come,” as such the company found it imperative to invest in crypto itself and lay the groundwork for ways to incorporate it into their business.

Corbett further wrote that they have come to “view bitcoin as a potential store of value over the long-term.”

According to him, Bitcoin may also serve as a “digital gold,” thanks to its unique characteristics including digital scarcity, known supply growth, transfer characteristics, and hard cap, “with the potential for significant price appreciation.”

Overall, he says the “asset class is new and still undergoing price discovery,” with significant uncertainty, risk, and volatility, which is expected to decrease as more institutions join in but added that,

“it will take multiple market cycles before we have robust data to further describe the characteristics of the investment, such as correlations to other asset classes or whether it will serve as an inflation hedge.”

Still, Bitcoin is not untested, and while the regulatory environment is still developing, Corbett says thoughtful and prudent regulation will accelerate the industry while protecting investors.

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Author: AnTy

Cryptocurrency Tax Dispute in South Korea Reaches Boiling Point

South Korea’s crypto industry is currently in the midst of a significant dispute with the government as the topic of taxation continues to rage on. Following a possible delay in the government’s proposed tax code, a lawmaker has come out to declare that he won’t be backing down.

A Partisan Divide Over Tax Implementation

On Thursday, Naver News reported that Noh Woong-rae – a member of South Korea’s National Democratic Party – is looking to postpone the country’s crypto taxation bill until 2023. As the report explained, Noh said that the ruling Democratic Party of Korea will not go along with the Ministry of Finance’s plans to tax cryptocurrencies in 2022.

The lawmaker explained that it is challenging to get the data needed for taxation from cryptocurrency exchanges and peer-to-peer (p2p) platforms. Since the ideal infrastructure to support taxation isn’t ready, a deferral of the tax code is the only viable option.

Moves to delay the crypto tax code have been growing strong over the past few months. The proposed code will levy a 20 percent tax on income generated through crypto transactions, provided that the income exceeds 2.5 million won (about $20,000). The bill was set for passage and iomp[lementation on January 1, 2022, but the Democratic Party – which holds a slim majority in the Korean parliament – was reported to be working on a counter bill to postpone it until at least 2023.

The problem with the counter bill is that the Democratic Party only holds a slim majority in Korea’s parliament. So, getting the counter bill to pass will be slightly challenging.

It is even more complex since Finance Minister Hong Nam-Ki remains adamant in his mission to get the crypto tax law to pass in 2022. Hong himself is a part of the minority Peoples’ Power Party, and he has served in the position of Prime Minister before. So, he holds a great deal of political power.

Just yesterday, Hong reportedly asserted his desire to get the tax code passed next year, even rejecting an argument from the ruling party that a 2023 date would be perfect as it would coincide with the country’s capital gains tax on stocks.

September 24 Looms

On the issue of data collection, South Korea’s government appears to have a solution for that. In July, the government announced that crypto exchanges would need to register with the Financial Services Commission (FSC) before September 24 or face punishment. The new regulations will affect both South Korea-based exchanges and those that operate in foreign markets.

The release added that these rules also apply to exchanges that support the Korean language or whose marketing is geared towards the country’s citizens. Defaulting exchanges could face a fine of about $43,000, while their principal officers could spend up to five years in prison.

If exchanges do register with the government, they could gather information and develop a proper structure for taxation. Whether that taxation will come in 2022 or 2023 is yet to be seen.

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Author: Jimmy Aki

Even JPMorgan Has Turned Bullish, Now Saying “The Previous Phase Of Demand Weakness Is Over”

“Significant impulse” seen in the futures as a sharp rebound of crypto “caught most investors by surprise,” more so on ETH, whose OI on CME has hit a new peak in USD, all the while on the back of low leverage. At the same time, the long USD continues to soar to new highs.

Bitcoin and Ether are recovering spectacularly from the losses recorded in the second half of May, the entire June, and much of July.

August is finally looking good after nearly three months of red, with BTC almost touching $48,000 on Friday and Ether climbing to $3,330. The total crypto market cap aims for $2.1 trillion, now closer to the $2.55 trillion peak from mid-May.

Interestingly, just like crypto-assets rallied into the end of 2020 to the 2017 ATHs, this time, prices are slowly moving towards their 2021 peaks without the high leverage. FRNT Financial CEO Stephane Ouellette said in an interview,

“Typically, we look at that as more of a strong-handed rally, which implies that the leverage portion of the rally comes later.”

“If that is the case, those $100,000 targets are very reasonable, I’d suggest. The last time we saw a move of this little leverage, we were pointing towards $20,000, and we didn’t really see the leverage come into the market in an aggressive way until we got to $40,000, which took us to $65,000.”

On Binance, BTC’s annualized daily basis is currently 3.56%, down from 41.4% in mid-April, which was a mere 0.2% in late March just before its peak. As of writing, the highest Bitcoin funding rate is 0.0240% on FTX while keeping around 0.1% on the majority of the crypto exchanges, as per Bybt.

As for ETH, it’s 3.72% (7DMA, APY), while in February, it was above 50% on Binance compared to 131% on Bybit and 113.7% on BitMEX. Currently, it is 21% on BitMEX and 3.72% on Bybit.

All the while, open interest on futures continues to climb; on Bitcoin contracts, it is $16.72 bln back to May levels. This OI is up 57.4% from the late June low and still down 39.6% from the April high.

As for Ether, OI is currently sitting at just above $9 bln, up 104% from late June low but down 22% from May high.

On CME, OI on Bitcoin futures is $1.71 bln, down from a $3.26 high on Feb. 21 but up from $1.14 bln on July 1st — accounting for 10.23% of the market share. Unlike BTC, on Eth futures, OI on CME has surpassed the May 14 peak of $607.88 mln to reach $648.5 mln — accounting for a 7.02% market share.

Traders on CME are also closing their short positions, which have hit their smallest since mid-May. Bitcoin net shorts have fallen to 1,104 contracts from 1,290 in the previous week.

Amidst this, US dollar net longs rose again to reach their highest level, $3.08 billion, since early March last year. US dollar positioning has been net long for four weeks in a row now after staying net short for 16 months. JPMorgan strategist Nick Panigirtzoglou wrote in his latest crypto report,

“There are clear signs of demand improvement in futures markets pointing to rising institutional demand for crypto. Momentum traders such as CTAs have likely amplified recent crypto price moves as the shorter lookback period momentum signals shifted from negative to positive territory for both bitcoin and ethereum. Typically this is when momentum traders’ impact is mostly felt as they are forced to exit short positions and start building up long positions.”

According to the strategist, the institutional buying of crypto has reversed and spiked after several months of muted activity.

This is because “the sharp rebound of crypto markets over the past three weeks caught most investors by surprise,” wrote Panigirtzoglou.

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JPM now sees a “significant impulse” in the futures. They have now come around on backwardation as well, which they previously saw as a bearish signal. Back in early June, in contrast, trader CL of eGirl Capital had said that longing BTC every time it’s in backwardation has resulted in significant profits.

Now JPM is also arguing “that the previous phase of demand weakness is over.”

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Author: AnTy

Despite ‘Significant’ Demand, Denmark’s Biggest Bank Will Maintain ‘A Very Cautious Approach’

Despite ‘Significant’ Demand, Denmark’s Biggest Bank Will Maintain ‘A Very Cautious Approach’

The Nordic region is simply staying away from crypto due to a lack of regulation in the sector.

Danske Bank says it won’t allow trading of Bitcoin and other cryptocurrencies on its platform despite the growing interest from its clients.

The reason for not lifting the ban on trading crypto is the lack of transparency and regulation in crypto trading, as per the bank’s website. Denmark’s biggest bank also warned of volatility, “opaque” pricing, and the carbon footprint of crypto mining being at odds with its goal of sustainable banking.

“We recognize that there is a significant global market for crypto currencies and that many customers find cryptocurrencies interesting,” the bank said.

“However, as a financial institution, Danske Bank for several reasons maintains a very cautious approach towards cryptocurrencies.”

The bank is currently under investigation for money laundering in the U.S. and Europe.

Danske said it was waiting to see the developments to be made under new European Union legislation, Regulation of Markets in Crypto Assets (MiCA), and that it will review its position if crypto assets get properly regulated.

“We continuously monitor developments in the area of cryptocurrencies, and as the cryptocurrency market matures and is further regulated, we will review our position.”

Nordic Region Staying Away From Crypto

A Swedish hedge fund Volt Capital Management also said it wouldn’t invest in Bitcoin because they prefer a regulated market.

Nordea Bank Abp has also banned Bitcoin, saying it is too risky to explore without regulations and won’t let employees trade it either.

Earlier this week, the head of Sweden’s financial regulator, Erik Thedeen, further warned of a “significant risk” that crypto assets may be used for criminal purposes.

“Financial firms need to ask themselves whether they really want to invest in or encourage the growth” of such assets when they have “no obvious valuable, legitimate use,” he said.

Not Everyone Is Onboard

Elsewhere, a Coinbase user complained on Reddit that he is having issues with withdrawing money from Coinbase to their Citibank account via instant debit card.

“They informed me that they are no longer accepting incoming credits from Coinbase or other cryptocurrency-related institutions,” wrote the user.

However, this isn’t the first such incident. Back in 2018, four banks Citi, JPMorgan Chase, Bank of America, and Capital One, prohibited purchasing cryptocurrencies at the platform using their credit cards.

But now banks have started to get comfortable with crypto, with big giants like Goldman Sachs and JPMorgan offering crypto trading services to their clients.

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Author: AnTy

There’s “Significant Desire” for Crypto Among Investor says BBVA as it Launches Bitcoin Trading Service

There’s “Significant Desire” for Crypto Among Investor says BBVA as it Launches Bitcoin Trading Service

Spain’s BBVA is launching a Bitcoin trading service for private banking clients in Switzerland interested in investing in crypto assets.

BBVA said on Friday that the new business is launching on June 21. The bank is present in Switzerland through a fully owned franchise.

This new service will include bitcoin trading and custody services with an aim to expand it to other cryptocurrencies as well.

It should be noted that BBVA won’t be offering any advice on these investments, only the option to invest.

The bank actually found that there is a “significant desire” among investors for crypto-assets to diversify their portfolios despite their high volatility and risk, said BBVA Switzerland’s Chief Executive Alfonso Gomez in a statement.

However, these new cryptocurrency services would be limited to Switzerland because of their clear regulation (unlike the US) and widespread adoption in the country.

“Its extension to new countries or other types of customers will depend on whether the markets meet the appropriate conditions in terms of maturity, demand, and regulation.”

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Author: AnTy

A ‘Significant Amount of Interest’ Pushes Goldman Sachs to Offer Ether Options & Futures Trading

A ‘Significant Amount of Interest’ Pushes Goldman Sachs to Offer Ether Options & Futures Trading

Mathew McDermott, head of digital assets at the bank, said clients are eager to trade crypto assets at current prices, which are currently at a “more palatable entry point” following the “cleansing exercise” in terms of leverage reduction.

Goldman Sachs Group is expanding into Ether.

The banking giant is now planning to offer futures and options trading in Ether, the second-largest cryptocurrency, in the coming months, according to Mathew McDermott, head of digital assets at Goldman.

Currently trading above $2,600, the $300 billion market cap cryptocurrency is still up 254% YTD after experiencing a drawdown of 60% from its all-time high of $4,380 last month.

The recent sell-off in the crypto market has resulted in the activity falling significantly, which has the average fees on the Ethereum Network at about $3 after going for $100 towards the end of May.

Since last month, the market has been in a deep rut; it makes sense that it will take time to attract interest again.

Meanwhile, it was only this year that the bank restarted its trading desk to help clients trade futures tied to Bitcoin. McDermott said Goldman also plans to facilitate trades via exchange-traded notes tracking Bitcoin. BTC -0.94% Bitcoin / USD BTCUSD $ 40,116.98
-$377.10-0.94%
Volume 40.11 b Change -$377.10 Open $40,116.98 Circulating 18.74 m Market Cap 751.63 b
6 h SEC’s 2021 Regulatory Agenda Does Not Include Bitcoin or Crypto 7 h Bitcoin Has Only Been This ‘Cheap’ Relative to Trend 20.3% Of The Past Eleven Years: Pantera Capital 8 h To Acquire Even More Bitcoin, MicroStrategy will Now Sell up to $1 Billion of its Shares

“We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point,” McDermott told Bloomberg in an interview on Thursday.

“We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective.”

McDermott joined Goldman last year as the head of its digital currency efforts, and under him, the business has grown from four to 17 people. This year, the bank also invested in crypto start-ups. Last month, Goldman led the $15 million investment into Coin Metrics, and this month it put $5 million into Blockdaemon.

“We are looking at a number of different companies that fit into our strategic direction.”

In his interview, McDermott said his conversations with clients show that digital currencies aren’t just a fad. In a survey of 850 institutions last week, Goldman found that close to one in 10 are trading crypto, and 20% are interested in it. He said,

“Institutional adoption will continue. Despite the material price correction, we continue to see a significant amount of interest in this space.”

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Author: AnTy

Argentina’s Central Bank Warns of ‘Significant Financial Losses’ from Crypto Investing

Argentina’s Central Bank Warns of ‘Significant Financial Losses’ from Crypto Investing

The people of Argentina are actually investing in crypto to hedge themselves against the devaluation of its fiat currency peso, which has lost 80% of its value in the past four years.

The Argentine central bank and securities regulator released a joint statement Thursday warning the people about the problems associated with crypto investing.

Cryptocurrency “can cause significant financial losses for its holders, including the possibility of losing the totality of the resources invested,” said the statement. It then goes on to remind potential investors that digital assets aren’t legal tender.

The warning comes from a country that is struggling with currency turmoil and sovereign defaults. One of the biggest economies in Latin America has a history of currency devaluations and hyperinflation, making the citizens’ savings worthless.

Its fiat currency, the peso, has lost more than 80% of its value in the past four years. Because of this, despite strict controls on exchanging pesos for US dollars, Argentines largely keep their savings in USD.

Despite the risks, crypto trading isn’t at “significant levels of use and acceptance” in the country, said the government bodies in their statement.

Argentines have been shifting their focus on cryptocurrencies in the light of the decline in the economy that saw the number of crypto users in the country rising in the last 12 months, as per AFP.

Maximiliano Hinz, the head of Binance in Latin America, had reported a tenfold increase in active crypto trading accounts in the region. Hinz estimated that there were about 2 million registered trading accounts in the country.

Not only as a hedge against the currency devaluation, but people are also using their BTC, ETH, USDT, and DAI to pay for commodities.

Bitcoin and crypto have been serving as an inflation hedge against the backdrop of money printing by central banks.

In Nigeria as well, where the regulators have been letting the fiat currency weaken through multiple currency regimes, people are turning to BTC.

Besides the currency issues, Santiago R Santos of Parafi Capital also noted that crypto is the answer to remove innovation aversion and wealth distribution.

In Mexico, “wealth is very concentrated,” and the few controlling families don’t invest in innovation.

“Enter crypto where capital moves at the speed of information & finds the best talent across global open-source communities. Crypto is shattering this local inefficiency,” he said. “The Internet-connected the world with information. DeFi is connecting the world with capital.”

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Author: AnTy

Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report

Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report

The company saw a “tremendous” amount of interest from treasury executives, taking positions in bitcoin for the first time.

Genesis, a wholly-owned subsidiary of Digital Currency Group (DCG) which is also the parent company of Grayscale, released its Q1 2021 report that shows that it facilitated over $60 billion in digital asset trades, loans, and transactions across the quarter.

The institutional digital asset lender and prime brokerage service provider reported an increase of over 25% of total activity in volume from corporates. There has been a tremendous amount of interest from treasury executives, which is expected to continue throughout the year. Matt Ballensweig, Head of Institutional Lending at Genesis said,

“If 2020 marked the beginning of the institutional epoch in crypto, the first quarter of 2021 was a Cambrian explosion of institutional inflows into crypto assets of all stripes.”

While spot saw $31.5 billion in volume, a jump of 287% from the previous quarter, $10.5 billion were traded in its OTC market, which was a surge of 133% QoQ. Much of this growth, Ballensweig said, came from new market participants, “many of whom are corporates taking positions in bitcoin for the first time.”

The key drivers of growth were higher frequencies of trades and increased notional per trade from crypto-native hedge fund clients.

In Q1, the company recorded over $20 billion in new originations, increasing 163% from the previous quarter. Active loans outstanding meanwhile have gone up 136% to $9 billion.

Genesis saw growth for twelve straight quarters in cumulative originations, which increased 94% to bring the total originations since launch in March 2018 to $40 billion.

The company recorded a decline in bitcoin borrowing demand, which, as we reported, was also noted by BlockFi, which as a result decreased the interest rate on its crypto assets for the second time in just two months.

This drop in BTC yields is due to the supply side expanding while the demand side has fewer low-hanging opportunities.

“BTC basis and funding arb still very much present- turning a lot more institutional heads to seriously look at crypto yield opps,” noted Ballensweig.

BCH -3.26% Bitcoin Cash / USD BCHUSD $ 880.78
-$28.71-3.26%
Volume 2.63 b Change -$28.71 Open $880.78 Circulating 18.72 m Market Cap 16.49 b
10 h Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report 5 d Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions 1 w Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest
ETC -1.44% Ethereum Classic / USD ETCUSD $ 34.51
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Volume 1.64 b Change -$0.50 Open $34.51 Circulating 116.31 m Market Cap 4.01 b
10 h Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report 2 w Grayscale Bitcoin Trust (GBTC) Is Fast Approaching World’s Largest Commodity ETF, GLD with $57B AUM 2 w Robinhood Reports 50% More Active Crypto Users at 9.5 Million Than Coinbase
XRP 3.14% XRP / USD XRPUSD $ 1.40
$0.043.14%
Volume 7.63 b Change $0.04 Open $1.40 Circulating 45.4 b Market Cap 63.56 b
6 h Blockchain Company Paxos Closes New Funding Round Worth $300 Million 6 h SBI Group CEO Reveals Ripple IPO Plans After Settlement With SEC Over XRP Lawsuit 10 h Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report
LTC -1.26% Litecoin / USD LTCUSD $ 255.46
-$3.22-1.26%
Volume 3.55 b Change -$3.22 Open $255.46 Circulating 66.75 m Market Cap 17.05 b
10 h Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report 2 d BlockFi Slashes Rates on BTC, Ether, LTC, LINK & PAXG for the Second Time This Year 5 d Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions

However, its loan portfolio increased substantially in value through a combination of new issuance across cash, ETH, and Decentralized Finance (DeFi) assets. The biggest increase was in ETH borrowing, from 15.5% in Q4 2020 to 27% in Q1 this year.

ETH and other altcoins now represent 35% of Genesis’s lending business. The report notes the institutional adoption of ETH, which became a major theme on the back of DeFi’s growth with EIP 1559 providing deflationary catalyst bolstering ETH’s monetary premium.

“With the rise of DeFi protocols, and yield opportunities on platforms including Compound, Uniswap, Sushiswap, Aave, and Maker, there are more openings for traders to arbitrage Centralized Finance (CeFi) lenders with DeFi.”

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Author: AnTy

“Very Significant Demand for Digital Assets,” says BNY Mellon Investing in Fireblocks

“Very Significant Demand for Digital Assets,” says BNY Mellon Investing in Crypto Custody Startup, Fireblocks

Bank of New York Mellon Corp. is investing in cryptocurrency startup Fireblocks that builds tools for the transfer and storage of cryptocurrencies, reported the Wall Street Journal — yet another move by a traditional Wall Street player to embrace crypto assets.

This latest one came just after last month, the bank announced that it plans to serve as a custodian for crypto assets on behalf of institutional investors.

“There is very significant demand for digital assets in general,” said Roman Regelman, chief executive of BNY Mellon’s asset-servicing and digital businesses. “They’re becoming part of the mainstream.”

One of the world’s largest custody banks, BNY Mellon has $2 trillion in assets under management (AUM), as of 2020.

Earlier this month, PayPal also acquired Curv, a Fireblocks rival. Another major custody bank State Street Corp. is working on a digital asset custody service as well.

BNY Mellon’s strategic investment in Fireblocks is part of the New York-based startup’s larger funding round of $133 million from investors that include venture-capital firms Ribbit Capital and Stripes and hedge-fund firm Coatue Management.

“Eventually, the major cloud providers will either have to buy these infrastructure companies or build them in-house. Lacking the domain expertise alone of custody or scaling public chains will put them at a massive disadvantage longer term,” said trader Joe McCann, founder of NodeSource.

Amidst the ongoing bull market that has Bitcoin becoming a trillion-dollar crypto asset and the total cryptocurrency market cap surpassing $1.8 trillion, the companies in the industry are using this as an opportunity aggressively to raise funds, with Coinbase in the lead.

Founded in 2018, Fireblocks has raised $179 million, including the new round, to date. The Series C round gives the firm a valuation of over $900 million.

The startup moved over $100 billion in crypto assets last month, which was more than double the amount done three months earlier.

With over 200 clients, Fireblocks is working with some of the larger crypto-focused trading firms and several multinational banks as well.

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Author: AnTy

Crypto ETP Volume Surges in January as Institutions Flood the Market

Data shows that the trading volumes for crypto-denominated ETPs saw a significant surge in January 2021. Institutions also appear to be cutting their losses as the crypto market braces for a more significant pullback.

All eyes are on institutional crypto investors this week again, as it appears that some have been making significant plays to begin the year. In its recent weekly report, market data and metrics provider CryptoCompare has confirmed a spike in the volume of assets under management (AUM) in crypto-denominated exchange-traded products (ETPs).

Promising Numbers Across the Board

Per the report, there has been a staggering 93.7 percent increase in the AUM for crypto ETPs across the board. In nominal terms, crypto ETPs now holds an impressive $36 billion. Aggregate daily volumes also jumped above $1.5 billion, marking healthy institutional participation to kick-off 2021.

CryptoCompare noted that Grayscale Investments makes up a significant chunk of these figures, with its various investment trusts housing $22.6 billion, 63 percent of all capital invested into crypto ETPs. The New York-based asset management firm’s products were also found to have represented 64 percent of the entire industry’s ETP volumes, pushing $972 million in daily trading volumes.

Grayscale’s dominance in the institutional investment space has been nothing short of astonishing. The company, which operates several investment trusts for large-cap cryptos, has been the go-to source for institutions looking to get their bit of the crypto pie. As a result, its AUM has been on the rise for months.

Earlier this week, Danny Scott, the CEO of crypto exchange CoinCorner, confirmed that Grayscale purchased 16,244 BTC ($607 million) in 24 hours. Even with the threat of a liquidity crunch, the company has continued to suck up Bitcoins from the open market at incredible levels.

While Grayscale dominated trading volumes, the company’s products still trailed in the spot markets, as the premiums on its shares fell by 8 percent this month.

As for exchange-traded notes (ETNs), trade volumes almost tripled in January. These were dominated by the BTCE product from ETC Group, which saw nearly $50 million in daily trades.

The second-most traded ETN was the BTCW/USD ETN from WisdomTree, which had $7million in trading volumes, while VanEck’s Bitcoin Vectors saw $5 million in daily trades.

Profit-Taking from Investors

Although the commitments into crypto ETPs have been impressive, institutions are also staying vigilant as Bitcoin’s price begins a significant pullback.

Crypto fund provider CoinShares reported that institutional crypto products had seen $85 million in outflows this past week, asserting that some investors seem to be taking profits following Bitcoin’s bull run over the past month.

CoinShares noted a similar trend in Ether-derived investment products, with $3 million exiting the past week’s market.

Despite the strong profit-taking, institutional inflows are still strong, with $359 million entering crypto investment products this week. CoinShares noted that Bitcoin remains investors’ top prize, with the leading cryptocurrency representing 99 percent of all capital inflows this week.

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Author: Jimmy Aki