Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- Indicators show that institutional investors are definitely moving forward with crypto investments.
- Nasdaq plans to pursue Bitcoin Futures despite crumbling prices
- First Crypto ETP on Swiss Exchange SIX becomes popular as traders go crazy over it
Institutions are coming to cryptos
Comfortable and lucrative entry points and availability of crypto products to invest in has been the right recipe that institutional money has been searching for to enter cryptos. With the recent meltdown in markets, the prices now seem lucrative enough institutions to bet on cryptos there is still a very little option or products for an institution to put their monies in to. Understanding this gap Nasdaq Inc. is moving ahead with a plan to list Bitcoin futures. The New York exchange operator, which was first reported to be eyeing Bitcoin futures last year, wants to allow trading in the first quarter of 2019, according to people close to this development. It currently has been working to satisfy the concerns of the U.S.’s main swaps regulator, the Commodity Futures Trading Commission, before launching the contracts.
Another news flow coming in from Europe that shows signs that institutions are getting into cryptos is the popularity of the recently launched crypto-based ETP that found its listing on Swiss exchange SIX. According to the data and news reports coming in from Switzerland, traders seem to have gone crazy Amun Crypto Basket ETP, worlds first crypto ETP. The recently launched Amun Crypto Basket ETP which began trading on Switzerland’s Six Exchange last week has already had the highest volume among another exchange-traded product trading on Swiss stock exchange, SIX. Although, the price of the investment product is down 15% at $12.40 a unit, reflecting the bearish sentiment of the overall crypto market, its turnover of 425,000 CHF ($425,000) a day was good enough to beat a number of products in silver, crude oil, and gold trading on SIX. As high volumes are typically associated with investor enthusiasm in a given stock or financial-product one can be sure that institutions are eyeing this product to enter crypto markets
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Mati Greenspan is the Senior Market Analyst at eToro, a global social trading and investment platform. Mati is a licensed portfolio manager in the European Union and his main focus is on macroeconomic analysis, portfolio diversification and cryptocurrencies. Follow him on Twitter at @matigreenspan