Within the official “Flows & Liquidity” report, JPMorgan analysts revealed that the institutions are piling into bitcoin at a stronger pace this quarter than they were in Q3, and should have a much bigger role in price movement than commodity trading advisors, or CTA.
As per the recent report written by Nikolaos Panigirtzoglou, Mika Inkenen, and Ekansh Agarwal. They added that institutional investors are watching bitcoin as a long-term investment. As proof, they cited the growing size in Q4 of Grayscale Bitcoin Trust, whose users are mostly institutional.
Also within Q3, retail consumers bought $1.6 Bln worth of BTC using Square’s Cash App, some 3x times over what was invested in Grayscale’s bitcoin product.
This quarter, however, the Grayscale Bitcoin Trust is at 3x times its Q3 numbers. There are no data at the present for Square users’ BTC buys.
Grayscale Investments is a digital asset management firm owned by the risk capital firm Digital Currency Group [DCG].
JP Morgan also speculates bitcoin’s failure to revert to its mean price in recent weeks might be a sign that momentum traders like CTAs have had a shrinking role within the market relative to institutions.