Institutional Bitcoin investment products trading is on a constant growing path since the beginning of the year, according to a weekly crypto analysis newsletter, Diar. To illustrate their findings, the editors published a chart that shows this type of trading for the last year and 3 months. In this way we can observe the evolution of Bitcoin trading at institutional level in a larger time frame context.
A Rekindled Interest in Bitcoin for Financial Institution
So, looking at the chart, a few interesting observations arise.
First of all, institutional trading of Bitcoin saw a significant peak in July 2018, reaching a level of 24% of total trading volume. However, it was quickly followed by a steep decline. By late November 2018, institutional Bitcoin trading reached a mere 10%.
Nonetheless, this was just a temporary situation, followed by a steady growing trend. Thus, by January 2019 trading levels reached 15%. And this month, they reached 19%.
Who Wins and Who Loses in This Context?
Without a doubt, as Diar indicates, CBOE (Chicago Board Options Exchange) is the biggest loser in this market context. The institution has recently delisted its Bitcoin futures. Apart from this institutional crypto product, Diar includes CME (Chicago Mercantile Exchange) Bitcoin Futures and GBTC (Grayscale’s Bitcoin Investment Trust) in its analysis.
Thus, CME enjoyed the biggest gain in light of the CBOE delisting. Their Bitcoin futures had a 10% market share in February 2018. By December 2018, CME reached a 40% market share. Then, the CBOE delisting took place in March. As you can see in the chart, while CBOE experienced a steady decline towards April, CME gained more market share, from around 50% in March to over 60% in April.
A Market under the Sign of Doubt
Despite these positive signals, all is not fair and good on the global crypto market. Diar did not forget to take note of the recent report prepared by asset management firm Bitwise.
In this report, the company claimed that 95% of the volume of transactions recorded by unregulated exchanges seems to be fake or non-economic. Moreover, Bitwise handed over this report to the US Securities and Exchange Commission. This institution oversees the financial and capital market and has the power to approve Bitcoin ETFs.
However, at least for now, the Bitwise report does not seem to have effects on the Bitcoin institutional trading market. We will keep our eyes on the evolution of this market and share with you the latest significant changes once they occur.