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More Institutions Are Buying Bitcoin, Say JPMorgan Analysts
In their “Flows & Liquidity” report, JP Morgan analysts say institutions are piling into bitcoin at a stronger pace this quarter than they were in Q3 and may have a bigger role in price movement than quantitative traders.
In their “Flows & Liquidity” report, JPMorgan analysts say institutions are piling into bitcoin at a stronger pace this quarter than they were in Q3, and may have a bigger role in price movement than commodity trading advisors, or CTA.
STORY CONTINUES BELOW
- The Friday report was written by Nikolaos Panigirtzoglou, Mika Inkenen and Ekansh Agarwal.
- They said institutional investors are looking at bitcoin as a long-term investment. As proof, they cited the growing size in Q4 of Grayscale Bitcoin Trust, whose customers are mostly institutional.
- In Q3, retail customers bought $1.6 billion worth of bitcoin using Square’s Cash App, some three times more than what was invested in Grayscale’s bitcoin product.
- This quarter, however, the Grayscale Bitcoin Trust is at three times its Q3 numbers. There is no data at present for Square customers’ bitcoin buys.
- Grayscale Investments is a digital asset management firm owned by venture capital firm Digital Currency Group (DCG), which also owns CoinDesk.
- JP Morgan also speculates bitcoin’s failure to revert to its mean price in recent weeks is a sign that momentum traders such as CTAs have had a shrinking role in the market relative to institutions.
Lawrence Lewitinn
Lawrence Lewitinn serves as the Director of Content for The Tie, a crypto data company, and co-hosts CoinDesk's flagship "First Mover" program. Previously, he held the position of Managing Editor for Markets at CoinDesk. He is a seasoned financial journalist having worked at CNBC, TheStreet, Yahoo Finance, the Observer, and crypto publication Modern Consensus. Lewitinn's career also includes time on Wall Street as a trader of fixed income, currencies, and commodities at Millennium Management and MQS Capital. Lewitinn graduated from New York University and holds an MBA from Columbia Business School and a Master of International Affairs from Columbia's School of International and Public Affairs. He is also a CFA Charterholder. He holds investments in bitcoin.
