An increasing number of indicators indicate that institutional actors continue to enter digital asset markets, currently dominated by individuals with a high level of equity and actively trading in crypto enthusiasts. Example: The cryptocurrency market often faces futures contracts in the form of open interest in institutions like the Chicago Mercantile Exchange. Known as one of the world’s largest derivatives, CME allows experienced traders to trade asset classes like agricultural products, energy, metals, cryptocurrencies and options.
Merchants in mobile medical institutions are usually institutions, not private individuals, so this open interest in the digital asset market is noteworthy. Organizations already working and working with CME, such as wheat and oil trade, are increasingly turning to cryptocurrencies as an alternative asset class. In fact, derivative financial instruments rose to a high level in May, reaching $ 602 billion, while total spot trading increased by 5% to $ 1.27 trillion. As a result, derivatives accounted for 32% of the digital asset market in May, compared to 27% in April, according to the latest Crypto Exchange survey.
Other reliable indicators include the latest report from Fidelity Digital Assets, a $ 7.9 trillion subsidiary in asset management. The study found that among the approximately 800 institutional investors surveyed, approximately 80% found something attractive in digital assets. Respondents evaluated the three characteristics of digital assets almost convincingly as they did: they are not related to other asset classes (36%), offer an innovative technical game (34%) and offer high growth potential (33%).
But the most noticeable thing is the fact that six out of every 10 respondents believe that digital assets occur in their investment portfolio – and this survey was conducted before the last COVID-19 pandemic. If the survey is conducted today, it will be interesting to see where the numbers are going down, given the broad discussion that the global crisis could be a turning point for the massive introduction of digital assets.
For example, the total investor Paul Tudor Jones recently announced his investment in Bitcoin (BTC) and approved a pandemic with a significant change in interest in digital assets. Its mission is that quantitative easing will lead to inflation, and Bitcoin is one of the best tools to hedge against inflation.
Support for cryptocurrencies at this level inspires confidence in the asset class as a whole. The evidence is in numbers, and the numbers show that crypto assets are becoming increasingly popular with institutional investors.