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Bitcoin is seeing a surge in inflow into larger wallets, indicating a rise in institutional investor demand, according to one of the world’s biggest banks, JPMorgan.
This phenomenon, coupled with growing optimism about the U.S. Securities and Exchange Commission’s potential approval of a bitcoin spot exchange-traded fund, is powering Bitcoin’s outperformance against other digital assets.
Such outperformance has led Bitcoin, one of the world’s largest cryptocurrencies, to reach a new high for the year.
The claim of increased institutional participation is backed by JPMorgan’s analysis of the crypto futures market.
For instance, the bank’s futures position proxy, primarily used by institutional investors, has spiked over the past week, reaching levels not seen since August 2022, before the FTX collapse.
This trend, however, is not observed in the futures proxy indicator for Ethereum, which remains subdued.
Unlike previous quarters, where smaller wallets driven by retail investors (i.e. everyday users), led the bitcoin impulse cycles, the current rally is strongly supported by larger wallets, indicative of institutional investment.
This change in the driving force behind Bitcoin’s rally further underscores JPMorgan’s assertion of increased institutional interest in the cryptocurrency. Read more here.
What Is Zucoin’s Edge Amongst Bitcoin’s Institutional Surge?
Bitcoin is skyrocketing, and institutions are the key driving force.
JPMorgan points out a shift from retail to institutional investors, contributing to Bitcoin’s surge.
While Bitcoin is in the spotlight, Zucoin is steadily progressing in tech advancements.
The Zucoin team has always positioned its Splitchain technology as a next-generation alternative to Bitcoin, as its primary focus, solving many of its long-standing limitations and issues.
Offering features like peer-to-peer fragmented storage and lack of mining, Zucoin could attract these institutional investors.
There’s increasing positivity surrounding Bitcoin spot exchange-traded funds, but Zucoin brings something different to the table.
With no transaction fees on its core Splitchain network and quick, 90-second transaction settlement times, it could entice a fresh influx of investors.
Most other big-name cryptos take upwards of 40 mins to properly settle a transaction, with users having to pay escalating fees to jump the queue.
Banks often take days to level out interbank liquidity.
JPMorgan’s study of the crypto futures market indicates that institutional investment in Bitcoin is growing.
Bitcoin’s surge opens up a distinct opportunity for a new wave of cryptocurrencies to carve out their own space in the digital asset landscape.
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Peter & Rob
Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.