JPMorgan Chase bank (JPM) considers that Bitcoin industry has significantly changed since 2017 by reason of institutional investors` increased interest – investment platform has learned.
Managing director of global market strategy of the largest US bank Nikolaos Panigirtzoglou released the report, in which the researchers studied recent phenomena, bound to cryptocurrency exchanges.
The research of Bitwise Asset Management informed, that Bitcoin spot market “is tiny and much more effective”, than it`s considered to be. In such a way, the volume of trading, announced by exchanges, is well overestimated.
Apparently, JPM follows alike meaning. Referring to JPM, if only 5% from in May declared trading volume in $725 milliard corresponds to reality, so true BTC trading volume in last month equaled about $36 milliard. On the other hand, May became the most productive month for Bitcoin futures operator CME Group – the volume of open futures contracts for bitcoin on CME reached its new maximum, exceeding $500 million.
This difference between trading on exchanges in comparison with bitcoin volumes on futures suggests, that now institutional investors are really interested in the cryptocurrency, JPMorgan notes.
“Oversize of trading volumes by cryptocurrency exchanges, and as a result, underestimation of quoted futures, allows suggesting, that, probably, market structure has greatly changed since the previous Bitcoin price jump at the end of 2017 with more influence from institutional investors”, – the report says.
Despite the growth of interest of professional investors, on Chicago Options Exchange the last bitcoin futures contract expires on June 19, after this cryptocurrency derivatives trading will stop. Wherein, last week it became known, that not yet launched platform Bakkt starts testing bitcoin futures on July 22.