Latest Report Shows Bitcoin Trading Volumes are Growing Once Again Focused on Institutions
After a very negative year for Bitcoin (BTC) and virtual currencies in terms of price behavior, trading volumes seem to be growing once again. Institutional trading products seem to be growing once again.
According to a recent report released by Diar, these institutional products continue growing for the 4th month in a row, reaching new highs in terms of percentage of total trading volume.
Trading Volumes Grow For Institutional Investors
As reported by Diar, institutional trading volume has been growing for the fourth month in a row and reaching new highs. Institutional trading volume is 8% more than when Bitcoin reached its all-time high in December 2017.
It is worth mentioning that the Chicago Board Options Exchange (CBOE) has been the biggest loser. Nonetheless, Grayscale’s Bitcoin Investment Trust (GBTC) has also lost its dominance in the market. At the beginning of 2018, Grayscale had a market share of over 50% and the CBOE had more than 40%.
Meanwhile, the Chicago Mercantile Exchange (CME) accounted for less than 10% of the market.
Things changed as the market entered a bear trend. Grayscale fell dramatically by May 2018 under 25% of the market share. Grayscale was able to overtake Grayscale and owned more than 30% of the market. The CBOE remained somehow stable close to 45%.
Now, the CME has reached an all-time high with over 61% of the total market share. The CBOE is close to 13% and Grayscale owns ~25% of the market.
Institutional volume has also been growing month after month since January 2019. Institutional products have now a share of the market of 19% when back in December they had just 10%. The highest point was reached in July 2018 when institutions handled 24% of the trading volume.
Last month, Bitwise Asset Management presented a report in which they showed that 95% of the spot exchanges in CoinMarketCap faked their volumes. That means that most of the exchanges are being affected by wash trading.
This is something that inflates trading volumes and attracts a larger number of interested users to trade in this platform. If Bitcoin and digital assets want to become more mature, they will have to deal with this issue.