An analyst at a US bank believes that cryptocurrency futures are greatly undervalued, and the digital money market has changed dramatically since 2017
Institutional investors came to the cryptocurrency market in 2017, since then the blockchain industry has changed significantly, says analyst at JPMorgan Bank Nikolaos Panigiertsoglu. He believes that Bitcoin futures are greatly underestimated, and the trading volume of the exchanges is vice versa, so the situation in the industry may not look like it really is, writes Bloomberg.
“In the Bitwise report, futures are called an important achievement, which enabled us to properly organize arbitrage transactions. In addition, the share of futures relative to volumes on the spot Bitcoin market increased sharply from April to May, ”said the analyst.
He compared the volume of trading in Bitcoin futures in May ($ 12 billion), April ($ 5.5 billion) and the first quarter of 2019 (an average of $ 1.8 billion per month). For genuine trading volumes of the first cryptocurrency, he took 5% of the indicators of the coin in May – $ 36 billion.
“The market structure has probably undergone significant changes since the previous bitcoin price jump at the end of 2017 — now institutional investors have a greater influence,” says Panigircoglu.
Infrastructure for institutional investors is gradually being created on the cryptocurrency market. In mid-May of this year, the Huobi Group launched an over-the-counter platform for major players. At the same time, BitGo created a clearing system of this level.