Report: A shift To OTC Bitcoin Markets By Traditional Investors
According to the Diar report,there is a growing appetite for investment in OTC funds like the ones offered by Coinbase a leading American crypto exchange. Though OTC trade volumes are dwarfed by non -OTC investments, the significance lies in that OTC markets are open for only 31% of annual tradeable hours. In terms of BTC trade volume on OTC markets , the Grayscale’s Bitcoin Investment Trust (GBTC) was outperformrd by Coinbase.
As reported,previously, GBTC is now a holder of nearly 203,000 BTC. being 1% of Bitcoin’s circulation. This is due in part of net inflows of $216 million into Grayscale’s Bitcoin investment Trust, over a 9 monthly period in 2018.
In 2018, OTC market hours accounted for a 20% increase for Coinbase in BTC trading volumes ,as compared to GBTC which accounted for a 35 percent drop in volumes as compared to the 9 monthly period in 2017.
“ Diar’s report explains that with continuous trading,traders and high net worth stake holders would require 24 hrs. Access and cushioning from shocks in a highly volatile market, Inspite of historic lows in 2018. On the reverse the uncertainties of the market may act as a hurdle and push the institutions to increase man power for open markets.”
HodlHodl a virtual currency exchange which also provides an OTC desk service, reportedly said that large order requests have increased exponentially in 2018 “doubling month-on-month.” “It's quite harder than usual to find a seller at current prices,” stated Max Keiudn CEO of HodlHodl.
With Coinbase launching OTC trading in late November to cater to increased demand for OTC crypto trading from institutional customers. A huge benefit for customers is that the exchange is actively considering offering both exchange and OTC business ,reports Cointelegraphy.