Newfangled Crypto Service Signals Continued Institutional Interest In Bitcoin

Since Bitcoin (BTC) began to falter in early-2018, optimistic investors, many of which are “HODLing,” have resorted to grasping for straws. Case in point,  the words, “Wall Street” and “institutional investors,” are incessantly mentioned, as crypto diehards have sought to find a light at the end of the proverbial tunnel.
But are institutional stakeholders really here?
Wall Street Doesn’t Like Crypto?
In recent weeks, the narrative that institutions and similar entities are flooding into the cryptocurrency space has been overtly questioned.
The Chicago Board Options Exchange (CBOE), the first issuer of U.S.-regulated Bitcoin futures, shuttered its offering. As reported by NewsBTC, this means that by June 2019, the exchange’s clients will have no open interest in any of the cryptocurrency contracts the CBOE offers. While some groups, like media outlet The Block, chalked this closure to the fact that there simply wasn’t enough demand to warrant the continued operation of the vehicle, some were more cynical.
Joe Weisenthal, a crypto-friendly reporter & anchor at Bloomberg TV, remarked that the “institutional money” cheer, sparked by the arrival of futures and custody solutions, is “one of the most busted narratives of 2018.”

XRP Plummets Over 50% on Major Exchange, Causing Rage Amongst Users
Thursday February 13, 2020

XRP has seen some incredibly bullish price action over the past couple of days, with the crypto’s recent break above $0.30 leading it to incur significant buying pressure that propelled it up to highs...

The post XRP Plummets Over 50% on Major Exchange, Causing Rage Amongst Users appeared first on 12bitplay - Bitcoin Play.

The idea that crypto futures (and crypto custody solutions) would unleash a tidal wave of "institutional money" is one of the most busted narratives of the last year. https://t.co/13RGkcDcBx
— Joe Weisenthal (@TheStalwart) March 15, 2019

What Pushed Bitcoin Up 65% in 2 Months? Top Fund Manager Explains
Saturday February 15, 2020

Since the middle of December, Bitcoin has been on an absolute tear higher, rallying from $6,400 to $10,550 earlier this week, per data from TradingView. This marks a surge of over 60%, meaning that...

The post What Pushed Bitcoin Up 65% in 2 Months? Top Fund Manager Explains appeared first on 12bitplay - Bitcoin Play.

Mark Dow, a notorious Bitcoin short seller, echoed Weisenthal’s statement. Dow took to Twitter citing his anecdotal experience as a “whale” in this market, explaining that every time he had to “roll his BTC exposure each month, liquidity got worse.” He added that it’s hard for him to buy “the story about broadening institutional adoption,” especially considering the aforementioned CBOE development.
Related Reading: Access to Thousands of Institutions: Gemini Crypto Exchange Partners With British Telecom
Not So Fast
Yet, the launch of a dark pool offering from Omega One might indicate that believe it or not, there still is institutional interest in this space. Alex Gordon-Brander, a ConsenSys C-suite member turned chief executive of Omega, recently took to Bloomberg to explain the subject matter in depth.

Bitcoin SV Dips 33% amid Altcoin Season Bust and More Losses are Coming
Monday February 17, 2020

The altcoin market is bleeding red and Bitcoin SV (BSV) is its most injured pawn. The fifth-largest cryptocurrency on Monday slipped by circa 10 percent to establish a new intraday low at $256.66. The...

The post Bitcoin SV Dips 33% amid Altcoin Season Bust and More Losses are Coming appeared first on 12bitplay - Bitcoin Play.

Omega One launches the first regulated, fully independent and institutionally focused dark pool for crypto assets https://t.co/wmWe9CNcxG pic.twitter.com/yt0WBMnCUa
— Bloomberg TV (@BloombergTV) March 21, 2019

Gordon-Brander explained that dark pools, a more private, shadowed version of an over-the-counter (OTC) desk, should reduce slippage, volatility, and liquidity concerns for institutions looking to delve into crypto assets, like Bitcoin. The former Standard & Poor’s employee then hints that there is demand for such a desk, explaining that there is “massive interest on the institutional side.”
Even if Omega’s launch doesn’t indicate ongoing involvement from incumbents of traditional industries, it could be argued that this newfangled dark pool could entice institutional players to make a foray into cryptocurrencies. That’s what some hope anyway.
Featured Image from Shutterstock
The post Newfangled Crypto Service Signals Continued Institutional Interest In Bitcoin appeared first on NewsBTC.

You may also like...