Popular cryptocurrency data outlet, Diar has issued a report showing an increased level of institutional trading activity in Bitcoin for the past four months and continues to grow. According to the report, institutional volumes are hitting new highs against the US-based exchanges as a percentage of total trading.
The report shows a month-on-month increase in institutional volume in Bitcoin products with 15 per cent in January, 17 per cent in February, 18 per cent in March and 19 per cent in April. Though it is lower from the July 2018 peak, when it reached 24 per cent but witnessed a steep fall continuing till December last year.
Diar’s institutional volume data is based on three institutional products, CME Bitcoin Futures, CBOE Bitcoin Futures and GrayScale’s Bitcoin Investment Trust (GBTC). The report also mentions that CBOE’s market share has seen the biggest decline since it delisted its BTC March Futures contract to review its crypto product offering. Diar further mentions that GBTC has also lost its dominance and its market share has shrunk to 24 per cent to the peak of 50 per cent.
However, despite the increased demand from the institutional segment, the BTC prices continue to be under pressure and also indicating the bear market is still not over. Also, in the volume front, reports of fake and non-economic value in small and unregulated exchanges continue to drag the market.
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