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- For Bitcoin, the previous several weeks have been turbulent. In fact, continuous sideways movement between $30,000 and $40,000 looked to be pushing BTC down
- According to CryptoCompare’s Digital Asset Management Review, total assets under management (AUM) fell by 14% to $34.8 billion before BTC’s price began to rise
- CME Futures had previously matched similar daily quantities at the start of May, and only the 19th of May’s volumes were larger than trading activity at the time
For Bitcoin, the previous several weeks have been turbulent. In fact, continuous sideways movement between $30,000 and $40,000 looked to be pushing BTC down. BTC, on the other hand, has managed to stabilize at the $40,000 mark in recent days. Although there is some optimistic momentum in the on-chain industry, there have been real institutional losses in July. Before we can determine if accredited investors are returning to Bitcoin, we need to include statistics on digital asset investment products. Most institutions do not deal with Bitcoin directly, therefore their investments are made through financial products. According to CryptoCompare’s Digital Asset Management Review, total assets under management (AUM) fell by 14% to $34.8 billion before BTC’s price began to rise.
Grayscale’s Bitcoin Trust product’s AUM has decreased to $25.96 billion at the time of publication, with 1070 BTCs exiting the product in the previous 30 days. In addition, the study stated, Aggregate daily volumes fell 35.4 percent to $319 million in July. The average daily volume of its GBTC and ETHE products was $160 million (down 37.7%) and $90.7 million (down 37.1%), respectively. It’s worth noting that these data sets were created just before the price increase, so the numbers might rise in the future. For the time being, however, investment vehicles are supporting low levels of activity. Institutions’ derivatives interest is highlighted by CME Bitcoin Futures, and there have been significant fluctuations over the last several days. The amount of Open Interest registered was $1.5 billion, which was the highest since June 14th. It was also the last time Bitcoin tested $40,000, by coincidence.
At press time, however, daily volumes were greater on average than in June. CME Futures had previously matched similar daily quantities at the start of May, and only the 19th of May’s volumes were larger than trading activity at the time. They are still cautious in general. It’s a start to get institutional capital back into Bitcoin at a price of $40,000, but it’s still a waiting game. The story might take a turn once Bitcoin reaches $42,000, a milestone that will calm some of the market’s concerns. Smart money, for example, saw a large surge in both long and short positions, according to Ecoinometrics. As a result, there is still a lack of precision when it comes to defining a single trend. As a result, the bottom line is that institutions are most likely not in, at least not yet. This, however, might change.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
