In the last year, there has been significant growth in the value of digital asset markets, and many believe that the rise was due to institutional investors. However, new data shows that the collaboration between institutions and cryptocurrency has gone down significantly.Many analysts have observed a lack of interest in bitcoin among institutions
The launch of Bakkt’s physically delivered BTC futures contract failed to meet the hype, which indicates the lack of interest in bitcoin among institutions. Many from the crypto community had speculated a strong institutional interest in the leading cryptocurrency. On 2nd October, The Tie reported that mentions of institutional interest in bitcoin in news headlines have plummeted to a 2019 low after seeing significant growth during the summer.
Mentions of institutional interest in Bitcoin in news headlines have plummeted to a 2019 low after seeing significant growth throughout the summer.
Data from over 85,000 unique publication headlines collected since October 2017. pic.twitter.com/3JqHEpIAF8
— The TIE (@TheTIEIO) October 2, 2019
The recent Bakkt launch, which was supposed to be a litmus test for institutional interest in bitcoin failed miserably. Crypto analyst Larry Cermak tweeted that the first seven trading days of Bakkt has been quite underwhelming. Total volume so far has been $6.5 million.
Bakkt's first 7 trading days have been quite underwhelming. Total volume has so far been $6.5 million. Even though it's not very comparable, BitMEX does that kind of volume in less than 4 minutes. CME BTC futures in about 80 minutes. Long way to go pic.twitter.com/Uf71fZKI0n
— Larry Cermak (@lawmaster) October 2, 2019
Despite the data pointing to a lack of institutional interest in bitcoin, many exchanges who provide derivative tradings are doing quite well. Recently Bitmex was probed by the US Commodity Futures Trading Commission for allegedly allowing customers to trade leverage. Bitmex is a market leader when it comes to derivatives. Reports suggest that Bitcoin cash futures will be initiated on a CFTC regulated exchange in the first quarter of next year.