Bitcoin (BTC) Becoming More Attractive for Institutions: New Evidence From Analyst Charles Edwards

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Tue, 06/09/2020 - 12:25
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Vladislav Sopov
Institutional investment in Bitcoin (BTC) is a common topic of pro-Bitcoin (BTC) narratives. Analyst Charles Edward believes this process is reaching a crucial milestone
Bitcoin (BTC) Becoming More Attractive for Institutions: New Evidence From Analyst Charles Edwards
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Seasoned analyst Charles Edwards of Capriole Investments has compared the Bitcoin (BTC) futures trading statistics from BitMEX and Chicago Mercantile Exchanges. Institutions are coming, he concluded.

Chasing BitMEX

Mr. Edwards revealed that the statistics for open interest in Bitcoin (BTC) futures for both platforms. The inputs for charts were provided by the Skew analytical group that addresses the segment of cryptocurrency futures trading.

CME Bitcoin (BTC) futures open interest is getting closer to BitMEX numbers
Image via Twitter

According to the statistics, open interest in the XBTUSD pair on BitMEX is about $616.7M - this is 9% less than the average amount in Q1-Q2, 2020. During the bullish rally of February 2020, this number stayed above $1.1B for two weeks.

On Chicago Mercantile Exchange, open interest in Bitcoin (BTC) contracts is $468M, which is twice as much as the average level for the corresponding period. Particularly, Charles Edwards highlighted the rapid progress of CME.

The Bitcoin (BTC) OI level on CME surged almost 310% in 2020. Thus, it can surpass competitors in the nearest future.

Does Bitcoin (BTC) need institutional money?

Mr. Edwards outlines that BitMEX trading statistics should be applied to retail Bitcoin (BTC) futures trading. In this segment, the exchange led by Arthur Hayes established itself as an undisputed multi-year leader.

CME Bitcoin (BTC) futures are mostly exposed to institutional investors. This is why this race goes far beyond the competition between the two platforms.

Typically, investors and analysts are waiting for an institutional money influx into Bitcoin (BTC). It could be major evidence of its adoption as a solid financial instrument.

Despite this fact, some prominent Bitcoin (BTC) experts think differently. Legendary cypherpunk and Blockstream CEO Adam Back announced that the Bitcoin (BTC) price could reach six-digit levels even with no institutional money involved.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)