When it comes to investment, institutionalization also means maturation. Some years ago, Bitcoin was perceived as an absurd internet currency majorly utilized by criminals on the dark web. At the moment, there are claims that Bitcoin is a risk-on asset and even a safe-haven.

As Bitcoin continued to evolve, Bitcoin’s movement to institutional coffers was anticipated. Both the Chicago-based CME and the CBOE exchanges (first to be regulated) were the first to leverage the cryptocurrency. Hence, it led to a main rush into institutional investments, with the cryptocurrency derivatives market becoming intense.

Market participants stated coming up with efficient products to further ease investment in the institutional sector. However, they have encountered resistance on two fronts. An example of a product still struggling with regulatory barriers is exchange-traded fund (ETF); it has been rejected many times.

There is unease in the crypto community due to the belief that a Bitcoin was not supposed to be institutionalized, and traded, as it is done nowadays.

Something similar has started coming up gold markets and it is probably a misleading clue for Bitcoin.

Recently, the Gold Demand Trends report noted the suggestion of the World Gold Council: gold’s inherent demand declined as investment flows into ETFs and related investment vehicles.

However, the report stated that ETF investment inflows were against the general trend. Based on institutional investment markets’ pace, there may be a perfect similarity to the Bitcoin markets in the few years ahead.

The trades on CME’s Bitcoin Futures are off the charts. Bitcoin’s consolidation above $9.1k on Jan. 30 was accompanied by an upsurge in Bitcoin Futures daily volume to more than $820 million. Such trading volume is the highest in more than a month. CME launched Bitcoin Options on Jan. 1 and it will only increase the derivatives markets’ enthusiasm.

The market participation of institutional investors is not to short the asset. Recently, Arcane Research’s report said the premiums on Bitcoin Futures were more than 2.5% for the contracts that will expire in March and about 5% for the contracts that will expire after the halving in June.

Without regard to resistance, the spot and futures market of Bitcoin will strive for power just like gold.

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