One class of investors has more than doubled the value of the long positions it holds in Bitcoin (BTC) futures contracts this month.
Institutions settle in for the long term
According to fresh data from analyst Skew Markets on Oct. 22, the value of institutional investors’ long positions went from below 500 BTC ($4.11 million) on Oct. 1 to over 1,000 BTC ($8.23 million) on Oct. 16.
The gains reverse a decline in institutional longs from September. The launch of Bitcoin futures from Bakkt coincided with open interest falling from around 1,300 BTC.
“For reference, institutions include pension funds, endowments, insurance companies, mutual funds & portfolio/investment managers whose clients are predominantly institutional,” Skew clarified.
What lack of interest?
Bitcoin futures were thought to have taken a longer-term break from being top of the agenda for institutional investors in the face of last month’s Bitcoin price downturn.
Despite assumptions on sentiment, industry players have more recently begun to dispel the myth that interest is waning.
As Cointelegraph reported, Grayscale, the world’s largest crypto-focused asset manager, went on record to confirm that clients had steadily been pouring in funds throughout 2019.
“We see institutional investors invest with us all the time and that’s been the case for a long time now,” the firm’s director of sales and business development Rayhaneh Sharif-Askary added in an interview earlier this month.
Nonetheless, other sources have quizzed the impact of institutions on Bitcoin. This week, CoinShares chief strategy officer, Meltdem Demirors, suggested custody practices, in particular, posed questions.
This post was originally published on www.cointelegraph.com