Jul 261 mins read

Institutional Investors Becoming More Active in Cryptocurrency Market

Hedge funds replacing high net worth individuals in private trades

Institutional Investors Becoming More Active in Cryptocurrency Market

According to Bloomberg, institutional investors are increasingly getting involved in the $220 billion cryptocurrency market. Hedge funds have replaced high net worth individuals as the largest buyers in private trades exceeding $100,000.

Hedge Funds

Mining companies, the largest sellers on the market, have also begun arranging regular token sales. This shift towards institutional investors taking over the wild west of cryptocurrency trading is seen as a positive development, though some fear it could lead to a market imbalance.

Mining Companies

Mining companies can now offer "virgin" tokens, which are highly sought after by investors because they are easier to prove they haven't been involved in money laundering. These virgin tokens can command a premium of up to 20%.

Cryptocurrency Trading

Overall, institutional involvement in cryptocurrency trading could bring greater stability and legitimacy to the market. However, it remains to be seen how this shift will affect smaller investors and overall market dynamics.