{"id":147580,"date":"2021-01-05T14:45:00","date_gmt":"2021-01-05T11:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-institutional-herd-is-here-bitcoin-volume-on-cme-lmax-hits-new-records\/"},"modified":"2021-01-05T14:45:00","modified_gmt":"2021-01-05T11:45:00","slug":"the-institutional-herd-is-here-bitcoin-volume-on-cme-lmax-hits-new-records","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-institutional-herd-is-here-bitcoin-volume-on-cme-lmax-hits-new-records\/","title":{"rendered":"# The institutional herd is here: Bitcoin volume on CME, LMAX hits new records"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df5134fb74\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df5134fb74\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-institutional-herd-is-here-bitcoin-volume-on-cme-lmax-hits-new-records\/#Institutional_appetite_for_Bitcoin_is_accelerating\" >Institutional appetite for Bitcoin is accelerating<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/the-institutional-herd-is-here-bitcoin-volume-on-cme-lmax-hits-new-records\/#Whats_next_for_BTC\" >What\u2019s next for BTC?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># The institutional herd is here: Bitcoin volume on CME, LMAX hits new records  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The daily volume of the CME Bitcoin (BTC) futures market and LMAX achieved a new all-time high on Jan. 4. The data show that the institutional demand for BTC is rapidly surging as major public funds continue to accumulate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Institutional_appetite_for_Bitcoin_is_accelerating\"><\/span>Institutional appetite for Bitcoin is accelerating<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to analysts at Arcane Research, the daily volume of LMAX Digital reached a record-high at $2.62 billion. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/992f35ef-636d-43d3-aa91-02f7db60aa37.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin daily volume on LMAX Digital. Source: Arcane Research<\/em><\/figcaption><\/figure>\n<p>LMAX is a trading platform that tailors to institutional and accredited investors, unlike retail-focused platforms such as Coinbase and Binance. Arcane Research\u2019s head of research Bendik Norheim Schei <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/bendikschei\/status\/1346369386379149312?s=20\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cWant another \u2018Institutional investors are here\u2019 chart? Here&#8217;s the daily volume on the institutional platform LMAX Digital. New all-time high volume of $2.6 billion yesterday.\u201d<\/p><\/blockquote>\n<p>During the same period, the CME Bitcoin futures market also achieved an all-time high volume at $2.7 billion in dollar terms.<\/p>\n<p>On CME, traders use Bitcoin-backed contracts and as such, when the price of Bitcoin increases, so does the value of contracts.<\/p>\n<p>The massive increase in the trading volume of institutional platforms comes as funds are aggressively investing in Bitcoin.<\/p>\n<p>On Jan. 5, Anthony Scaramucci, the former White House Director of Communications, said his hedge fund SkyBridge entered a $300 million Bitcoin position from November to December of last year. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Scaramucci\/status\/1346152001646817283\">said<\/a>:<\/p>\n<blockquote><p>\u201cWe @SkyBridge entered the #bitcoin market in Nov\/Dec with a now ~$300mm position, and today launched a #bitcoin fund offering for accredited investors. We believe we\u2019re in the early innings of a new asset class with tremendous upside.\u201d<\/p><\/blockquote>\n<p>With SkyBridge\u2019s investment in Bitcoin, nine funds now hold $23 billion worth of Bitcoin, according to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> researcher Kevin Rooke.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">9 funds now hold over $23 billion of Bitcoin. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/sfffwYK4oA\">pic.twitter.com\/sfffwYK4oA<\/a><\/p>\n<p>\u2014 Kevin Rooke (@kerooke) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/kerooke\/status\/1346175882688405504?ref_src=twsrc%5Etfw\">January 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Grayscale still holds the most Bitcoin at $19 billion through its flagship product the Grayscale Bitcoin Trust (GBTC).<\/p>\n<p>GBTC is an alternative to an exchange-traded fund, or ETF, in the U.S. in that institutions and accredited investors can gain exposure to Bitcoin through a strictly regulated vehicle.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats_next_for_BTC\"><\/span>What\u2019s next for BTC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the massive inflow of institutional capital into the Bitcoin market, the price of BTC sharply corrected on Jan. 4. <\/p>\n<p>The Bitcoin price dropped by over 15% on a single day after more than $2 billion worth of futures contracts were liquidated.<\/p>\n<p>Ki Young Ju, the CEO of CryptoQuant, said that derivatives traders are now uncertain and fearful, based on the declining leverage across major exchanges. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1346394686705995776?s=20\">said<\/a>:<\/p>\n<blockquote><p>\u201cThis indicator is better than the Fear &amp; Greed index. $BTC derivative traders are uncertain about the next move, and scared.\u201d<\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Estimated Leverage Ratio across exchanges is decreasing.<\/p>\n<p>Chart  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/5cT9wVNv16\">https:\/\/t.co\/5cT9wVNv16<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/m2emoxL1fK\">pic.twitter.com\/m2emoxL1fK<\/a><\/p>\n<p>\u2014 CryptoQuant.com (@cryptoquant_com) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/1346392789433556993?ref_src=twsrc%5Etfw\">January 5, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In the near term, this could result in a consolidation period, where Bitcoin sees lower volatility following a massive uptrend. <\/p>\n<p>In the last 48 hours, Bitcoin has still been able to remain above the $30,000 support level, which is an optimistic sign of positive momentum.<\/p>\n<p>Whale clusters suggest that the next major support area is $29,300, which would be a crucial technical level to defend for the ongoing rally to see renewed momentum.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/the-institutional-herd-is-here-bitcoin-volume-on-cme-lmax-hits-new-records\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# The institutional herd is here: Bitcoin volume on CME, LMAX hits new records &#8221; The daily volume of the CME Bitcoin (BTC) futures market and LMAX achieved a new all-time high on Jan. 4. The data show that the institutional demand for BTC is rapidly surging as major public funds continue to accumulate. Institutional&#8230;<\/p>\n","protected":false},"author":1,"featured_media":147581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/ea8a31b0-a67f-4ce0-a3c4-fea3e6764bec.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,80178,74937,75845,76550,73711,73785],"class_list":["post-147580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-investment-trust","tag-bitcoin-price","tag-cme","tag-grayscale","tag-investments","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/147580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=147580"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/147580\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/147581"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=147580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=147580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=147580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}