JPMorgan Chase, the largest bank in the US in a recent report outlined that the Bitcoin markets have changed since there has been a greater influence from institutional investors, according to a media outlet’s report on June 17, 2019.
Per the report, JPMorgan recently stated in its report that the Bitcoin markets have experienced a significant change in comparison to 2017 because now, there is a greater influence from institutional investors. The latter are nonbank persons or organizations that trade in securities amounting to millions of dollars.
Nikolaos Panigirtzoglou, managing director of global market strategy of JPMorgan who led the report outlined that if 5 percent out of May’s $725 billion Bitcoin trading volume reported by cryptocurrency exchanges is true, then it would mean Bitcoin’s actual trading volume in May was $36 billion.
The latter comments can be linked to Bitwise’s report in March to the U.S. Securities and Exchange Commission (SEC). The crypto asset management firm in its report stated that a major percentage of Bitcoin trading volume on exchanges is likely fake. Also, a number of digital currency exchanges inflate their volume in order to attract customers and set higher fees.
Unlike the trading volume of cryptocurrency exchanges in May, the month was the best performing month for CME Group, a Bitcoin futures provider who implied USD value was $500 million. As a result, JPMorgan has noted that the volume difference between digital currency exchanges and bitcoin futures shows that institutional investors are now sincere about crypto assets.
JPMorgan also said:
“The overstatement of trading volumes by cryptocurrency exchanges, and by implication the understatement of the importance of listed futures, suggests that market structure has likely changed considerably since the previous spike in Bitcoin prices in end-2017 with a greater influence from institutional investors.”