• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Will Trump Pardon Sam Bankman-Fried? Polymarket Odds Surge as Traders React to CZ’s Release
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Will Trump Pardon Sam Bankman-Fried? Polymarket Odds Surge as Traders React to CZ’s Release

Institutional Traders Haven’t Rescued Crypto Yet

Erich Grant
by Erich Grant
7 years ago
·
Posted in News, Companies, News teaser, Trade, Trading
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Throughout 2018’s price slump, investors in digital assets hoped for an influx of institutional investors to rescue crypto prices. Retail investors pinning their hopes on large investors breaking digital assets out of their price slump are beginning to make peace with an uncomfortable fact — the institutional investors are already here.


Hedge funds and proprietary trading shops are increasingly becoming some of the largest traders of cryptocurrencies, taking the other side of larger trades in the market. The impact of professional and institutional investors on crypto markets is reflected in collapsing bid-ask spreads and increasing price convergence across exchanges. Spreads on bitcoin (BTC) [coin_price] future contracts trading on the CME have collapsed by as much as eighty percent since the contracts began trading.

Many of the institutional firms entering the crypto space are proprietary trading firms, whose primary business lines typically include market making and arbitraging pricing inefficiencies across markets. Proprietary firms have been trading digital assets using primarily using over-the-counter (OTC) markets, rather than utilizing traditional exchanges. In over-the-counter OTC trades, trades are made directly by buyers and sellers, rather than routing through an exchange or open marketplace.

Ethereum Classic Steadily Rises To Surprise Top Ten Crypto Markets

Better Pricing Through OTC Markets

Some of the biggest sellers on OTC markets are coin miners. Coin miners are increasingly using private sales to distribute their inventory, rather than offloading the newly minted coins directly onto retail exchanges.

By trading with proprietary firms and brokerages — rather than on exchange — miners and other big sellers can lock in pricing before completing the transaction. This eliminates the need for sellers to attempt to time market highs and can make earnings smoother and more predictable. Miners have reportedly begun setting up their own liquidity management teams to streamline their OTC trading operations.

Institutional traders also provide a valuable service to larger buyers hoping to enter the market. Large buyers frequently find that, due to the fragmented nature of crypto markets, they can not purchase large blocks of coins through exchanges without significantly driving up acquisition costs.

Chicago

Chicago’s Increasing Role

One of the largest OTC market participants is Cumberland, a subsidiary of DRW. DRW has been opening offices globally to build its position as a global market maker for digital assets. Cumberland currently has a staff of approximately fifty people, the majority of whom are based out of Cumberland’s Chicago headquarters.

Other notable entrants include Jump Trading, XR Trading and Transmarket. Many of the market makers entering the space are based in Chicago, which has a large pool of proprietary trading firms and market makers. These emerged from Chicago’s dominant global futures exchanges.

Chicago’s increasing importance in the world’s digital asset infrastructure was highlighted by the launch earlier this year of Coinbase’s Chicago office. Coinbase’s OTC arm is headed by Paul Bauerschmidt, who spent thirteen years working at the Chicago Mercantile Exchange. Coinbase expects to eventually add up to thirty staff at its new office.

While the impact of the entrance of institutional investors hasn’t caused the hoped-for price resurgence, it is a powerful sign of the long-term viability of the crypto markets. Collapsing spreads and greater market liquidity will ultimately benefit all market participants.

Can institutional investors rescue crypto prices? Let us know your thoughts in the comments below.


Images courtesy of Shutterstock.

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Erich Grant

Erich Grant

Follow

Full Profile

Related Posts

Криптобиржа

KCEX запускает бонусную программу для поддержки трейдеров

2 days ago
Wall Street

Wall Street Behemoth With $1.8 Trillion Under Management Finally Dives Into Crypto

2 days ago
Quantum Shock: Google’s Breakthrough Puts Bitcoin’s Encryption On Notice

Quantum Shock: Google’s Breakthrough Puts Bitcoin’s Encryption On Notice

3 days ago
Криптобиржи

Биржи запускают бонусы, чтобы восстановить торговые объемы

3 days ago
KCEX: Bonus de 10% la depunere și recompense de până la 21.000 USDT

KCEX: Bonus de 10% la depunere și recompense de până la 21.000 USDT

3 days ago
Diddy

Diddy Strikes Back — Files Appeal As SBF’s Ex-Cellmate Joins Legal Rebellion

3 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • Snorter Bot...

    3 days ago
  • ORIGIN Protocol's LGNS Achieves Historic Milestone: Liquidity Tops $194 Million, Reclaiming Title as Global Leader in DeFi

    ORIGIN Protocol’s LGNS Achieves Major Milestone...

    4 days ago
  • bonus kcex

    Bonus KCEX: promozione da $21.000 con un bonus deposito del...

    4 days ago
  • Maxi Doge

    Защо Maxi Doge може да се окаже...

    4 days ago
  • 挖 1 枚比特幣耗電可供 61...

    4 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.