Bitcoin [BTC] has seen a massive spike in not just its price, but also in institutional momentum. As an April 8 report by Diar stated, the institutional BTC products have continued rising against their US exchange equivalent for the fourth month in a row.
Diar charted the month-on-month institutional BTC products as a percentage of the total Bitcoin trading volume and saw a notable trend. After plummeting to 10 percent in December 2018, the share has been on a rise in the new year.
Increasing by 5 percent in January alone, the month of April saw the percentage share standing at 19 percent of the total volume, well above even October 2018. The highest level of the institutional products share was witnessed in July 2018, when the aforementioned market was almost one-fourth of the global volume.
Bitcoin Futures have also seen a variance in their share with the Chicago Mercantile Exchange [CME] now leading the charge as the Chicago Board of Options Exchange [CBOE] decided to delist their future contracts last month. Grayscale Bitcoin Investment Trust [GBTC], which also trades on the OTC market, has seen a decline as well.
GBTC began the previous year by holding 50 percent of the market share among the three players. By August, 2018, its share fell under 20 percent and despite rising above 30 percent towards the start of the current year, it now stands at 24 percent. CBOE holds 12 percent, while CME, seemingly unrivaled, climbed to over 60 percent of the total market share.
The large-cap digital assets fund fronted by Grayscale has seen a significant reshuffle in its composition for this quarter. Released last week, the crypto-asset management firm stated that they reduced the share of Ethereum [ETH] and XRP while increasing Litecoin [LTC] and Bitcoin Cash [BCH].
Diar also looked at the demand in terms of cryptocurrency market volume categorized between virtual currency exchanges and their institutional counterparts. As was expected, the decline in prices has not resulted in an increase in volume.
However, the only silver lining from the crypto-winter is that the volume distribution has been fairly consistent. For example, the BTC trade volume via institutional products as a percentage to that of the exchanges was 15.11 percent in January 2018, and a year later, it edged up marginally to 17.74 percent.
Overall, BTC trading volume took a massive hit in 2018, dropping from $30 billion at the beginning of the year to well under $5 billion by October 2018.
It should be noted that exchange-reported trading volume may not concur with the verified figure. As Bitwise Asset Management pointed out in their March report to the SEC, 95 percent of volume data reported by exchanges is fake or non-economic in nature; the same was mentioned by Diar in their recent report.
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