Bitcoin and the growing interest of institutional investors

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Thanks to the growing interest of institutional investors, the dominance of large bitcoin transactions has increased from 30% in 2020 to over 65% in 2021. 

Taking stock of the situation is on-chain market analyst Glassnode:

“The dominance of large Bitcoin transactions (> $1M) has risen from 30% in 2020, to over 65% in 2021. This reflects a growing share of institutional interest, and capital being transferring across the #Bitcoin network”.

In its on-chain report referring to week 32, 2021, Glassnode reported its data on the queen of cryptocurrencies, revealing that large BTC transactions dominate the scene.

“The dominance by on-chain transaction volume for values exceeding $1M+ (~23 BTC+ at $43.5k). Since September 2020, the dominance of these large size transactions has risen from 30%, to 70% of the total value transferred. […] This week, the dominance of $10M+ volume followed through with a spike of 20% dominance supporting the price rally”.

While transactions by large institutional investors continue to grow, transactions under $1m have declined, with dominance from 70% to around 30%-40%.

Capital from institutional investors prefers Bitcoin network

Dominating the scene on BTC are holders and accumulators, strategies not usually attractive to smaller traders in this ever-expanding crypto market. But rather favoured by institutional investors.

In August 2021 alone, JPMorgan Chase launched its own fund on bitcoin. The largest bank in the United States has thus started offering its private bank clients new bitcoin products for the first time.

Not only that, but bitcoin ETFs, which have been delayed on American soil for years, have also been approved in Europe this month. Namely, the Melanion BTC Equities Universe Ucits ETF, listed on Euronext Paris.

ETFs are financial instruments that facilitate access to crypto precisely for institutional investors.

Not to mention the great success of Grayscale’s issuance of its Bitcoin-linked shares, GBTC, which continue to attract big investors. Ranging from banking giant Morgan Stanley to equity investment rock star Cathie Wood, and many others.

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