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Institutionals have significantly increased ...

Institutionals Significantly Increase Cryptocurrency Trading Volumes in 2020
CONTENT

  • Institutional investors significantly increase their capital in cryptocurrencies amid the coronavirus pandemic.

  • The traditional stock exchange market will have to adapt to new service conditions.

  • The main profit for exchanges that have added cryptocurrencies is still based on traditional markets.

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Trading volume on the institutional cryptocurrency exchange LMAX Digital hits a record $ 36 billion in the first half of 2020.

Volatility in Crypto Assets Driven by Coronavirus Pandemic Spurs Profits for Institutional-Focused Crypto Exchange LMAX Digital.

This is reported by Financial News, citing LMAX Group CEO David Mercer.

Institutionals have significantly increased ...

LMAX pre-tax profit surged 13% to $ 13.5 in the first six months of 2020 and gross profit increased to $ 28.9 million, up 10% over the same period last year.

Mercer said March was an “exceptional” month for the company.

“If your business is a currency exchange, then volatility helps … If you can’t make money on the movement of the market, then you can never [make a profit in this area]” – said Mercer.

The total volume of cryptocurrencies traded through LMAX Digital, according to Mercer, doubled in the first half of 2020 to $ 36 billion, which is 106% more than in the same period last year.

“This is just a proof of concept that it is now [cryptocurrencies] a real asset class. Six to ten institutional players come to us every month, ”added the head of the LMAX Group.

The dollar is the basis

However, the main source of income for the LMAX is still the traditional foreign exchange markets. Foreign exchange trading volumes reached $ 2.3 trillion in the first six months of 2020, up 33% year-on-year.

Also, the head of the LMAX Group said that in the near future, stock exchanges around the world will follow the cryptocurrency market and introduce a seven-day trading regime..

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LMAX Digital holds the record for the average transaction size in the cryptocurrency market.

Highest average trade size on LMAX Digital according to analytics cryptocurrency Kaiko is 0.66968 BTC.

This, according to Kaiko, is due to the fact that LMAX Digital’s target base is almost entirely institutional..

Without unnecessary noise

Institutionals have significantly increased ...

The entry of institutional investors into the cryptocurrency industry is often equated with a new price rally. However, it is quite possible that there will not be a sharp rise in the price of cryptocurrencies..

According to one of the largest asset management companies – Fidelity, the vast majority of institutional investors are already actively interested in digital products..

[perfect_survey id = ”8392 ″]

Nearly 80% of institutional investors already regard cryptocurrencies as an attractive asset class, according to a Fidelity survey of nearly 800 investors from the US and Europe..

At the same time, more than a third of the respondents have already invested directly or indirectly in this market..

What do you think? Will institutional investors really not influence the price of cryptocurrencies? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

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All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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