It’s been long talked about that institutional money would change the flow of cryptocurrency prices in days to come. A lot of eyes were glued to the Bitcoin ETF but it’s still some distance away. While institutions were waiting on the sidelines to get an entry into crypto markets, the recent slide in prices has just made things lucrative for them. And the best sense of it comes from the fact that in past one week two of the prominent crypto exchanges- Coinbase and Poloniex have launched specialized services for them.
Poloniex bring in Institutional accounts while Coinbase brings in OTC trading desk for Institutions
In its recent announcement via its official blog post, Poloniex said that institutional accounts are now available on Poloniex. The exchange also mentioned that it is focused on meeting the advanced trading needs of institutions which would include higher withdrawal limits and professional customer support from a dedicated team of Account Managers in our Client Services department. The exchanges highly trained team will guide each institutional customer through the onboarding process, coordinate issue resolution across multiple teams and support ongoing trading activities.
The institutional accounts will have access to different crypto trading pairs and various exchanges API interfaces. The no-fee transactions for all bitcoin/USD Coin that is available all throughout December to Poloniex customers would also be applicable to these new institutional accounts.
Another major exchange, Coinbase recently spilt beans about having launched an over-the-counter (OTC) trading desk earlier in November. According to leading media houses, the rollout, however, was kept under wraps. According to officials, the firm, that was recently valued at $ 8 billion and raised $300 million in its latest round of funding, was keen first to gauge the response to the new offering from customers.
The development was reported earlier by CNBC. Tim Plakas, head OTC trader for Coinbase, said:
“We wanted to make sure we had all the boxes checked before we went public. We needed to have some of our trusted institutional clients on board and were in a beta mode to make sure that all the pipes were working”
What is further heard is currently, the OTC desk is available only to qualified investors on Coinbase Prime, the firm’s Institutional platform. As per company officials, the firm will later introduce the offering on Coinbase Pro, the platform for advanced traders and link it with its custody business as well.
While these are some recent announcements, the exchanges have been launching institutional products for over a month now.
Goldman Sachs-backed Circle, who happens to be the parent of Poloniex, already has an OTC desk with a minimum entry point of $250,000.
Well, exchanges seem to be signaling the institutional entry into crypto markets, everyone is just waiting for the trigger point that would charge the market to rise. Will it be Bakkt or Will it is the Bitcoin ETF, we will have to wait and watch
Do you think institutions are finally entering the crypto game? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.