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Institutional investors plan to buy every Bitcoin price dip, data suggests

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A new survey commissioned by crypto asset insurance company, Evertas, a cryptocurrency insurance firm, found that institutional investors plan to significantly increase their stakes in Bitcoin (BTC) and other digital assets in the future.

After surveying 50 institutional investors that collectively manage over $78 billion in assets in the United States and United Kingdom, a standout response was that 26% of participants believe that pension funds, insurers, family offices and sovereign wealth funds will raise their stakes in cryptocurrency “drastically”.

64% of participants believe the increase in interaction will be moderate, but the group also expects that hedge funds will be more actively engaged in crypto. 32% of respondents believe hedge funds will increase their crypto holdings drastically.

Institutions have a love-hate relationship with crypto

Institutional investors seem keen to invest in Bitcoin and other cryptocurrencies partially because they believe regulations for the crypto market will improve and become clearer in the future.

Others believe that the market will eventually become bigger, providing better liquidity, a feature that most institutional investors require. As the market improves, many also believe there will be a wider range of investment vehicles for institutions to choose from.

The survey also found that there are still many bumps in the road to crypto institutionalization. More than half of the participants said that they are concerned about the lack of insurance for digital assets, while others are worried about the quality of custodial services, trading desks, reporting facilities and the procedures of other companies working in the sector.

J. Gdanski, CEO and Founder of Evertas, told Cointelegraph:

“Our research shows that institutional investors are enthusiastic about increasing their exposure to cryptocurrencies and crypto assets in general, but there are clearly many issues regarding the infrastructure that supports these markets that still concerns them. These clearly need to be addressed if the full potential of investment from institutional investors in crypto assets is to be realised.”

While the outlook on regulating Bitcoin and other established crypto assets may be positive among institutional players, the same may not be true for other sectors of the cryptosphere.

Such sectors include decentralized finance (DeFi) and stablecoins, which have seen massive growth in 2020 and may soon face their own regulatory hurdles.

Institutions ignore Bitcoin’s volatility by taking a bird’s-eye view

While the price of Bitcoin has failed to live up to the post-halving rally that many investors anticipated, institutions remain interested in Bitcoin. Recently, the trading volume for Bakkt’s Bitcoin futures reached a new record of more than $200 million worth of contracts exchanged, suggesting that institutions are still accumulating BTC.

Furthermore, mainstream fund managers are beginning to enter the market, a sign which the majority of the Evertas survey participants believe is a major factor in the institutional adoption of crypto.

Just last week MicroStrategy CEO, Michael Saylor, followed the footsteps of veteran investor, Paul Tudor Jones by purchasing 21,454 BTC. Earlier in the year Jones revealed his stake in Bitcoin, describing the assets as the “fastest horse” with the best odds performance wise.

As investors’ interest in crypto-assets grows and the regulatory landscape for these assets becomes more clear, it’s expected that the wave of institutions flocking to Bitcoin will continue to increase.

Institutional investors plan to buy every Bitcoin price dip, data suggests

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Decentralized Exchange Aggregator 1inch Partners TRON to Integrate its Trading Protocol, JustSwap, and Other Enhancements

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1inch has teamed up with the developers of Tron (TRX), one of the largest platforms for building decentralized applications (dApps), in order to complete the integration of JustSwap and Mooniswap.

1inch provides an aggregator for decentralized on non-custodial crypto-asset exchanges with “the best prices” on the market. There are no registrations or sign-ups required to use 1inch. Its creators claim that it’s safe and secure.

The 1inch team stated:

“We’re thrilled to announce a partnership with TRON, one of the world’s most popular blockchains. … 1inch will fully integrate with JustSwap, TRON’s decentralized trading protocol for automated liquidity provision, and our automated market maker (AMM), Mooniswap, will integrate into TRON’s blockchain.”

Sergej Kunz, co-founder and CEO at 1inch, said that the integration will allow them offer “faster, cheaper service, and high-throughput scalability.” Users will also benefit from the larger developer communities of all these platforms, Kunz added.

As explained in the announcement, support of the TRON blockchain in 1inch will allow the aggregator’s users to “get the best rates” for TRON-based digital assets. The integration of Mooniswap with the TRON blockchain should enhance TRON’s decentralized finance (DeFi) ecosystem.

As noted by the 1inch team:

“Liquidity providers on the TRON blockchain will benefit from Mooniswap’s ‘virtual balances,’ which slow down price changes, preventing arbitrage traders from earning up to 100% of the swap slippages and therefore dramatically increasing liquidity providers’ earnings. Thanks to Mooniswap, TRON’s regular users will get an extra level of protection from front running attacks.”

TRON’s developers said that they expect that the integration will allow JustSwap to serve more traders or investors, while improving its price accuracy. JustSwap was launched in August 2020 and it has reportedly reached $100 million 24-hour trading volume.

TRON’s developers are planning to incentivize or reward liquidity providers (LPs) on Mooniswap with TRON’s native TRX tokens.

Founded in 2017 by Justin Sun, TRON aims to compete with Ethereum but has failed to capture a significant market share (when compared to the progress made by the Ethereum ecosystem).

TRON’s mainnet went live in May 2018, which was also around the time that the EOS mainnet was launched. In July 2018, TRON’s developers acquired BitTorrent, a decentralized solution for file-sharing. TRON’s virtual machine was launched in August 2018.

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Binance Coin (BNB) and OKEx’s (OKB) Exchange Tokens are Undervalued, while KuCoin (KSC) and Bitfinex (LEO) are Overvalued: Report

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The Token Insight team notes that in the crypto-asset sector, it’s always challenging to accurately provide realistic valuations for digital assets. At present, there’s no consistent or uniform industry-standard or reliable valuation method that would allow us to discover the real value of cryptocurrencies, the Token Insight team states.

Many digital currency exchanges have issued their own platform tokens which are supposed to directly relate to the performance of their platform or overall business. Exchange tokens are a “unique” category of crypto-assets and may be “fairly evaluated,” because of their inherent properties of “stable currency flow,” according to a report from Token Insight.

The report states:

“We have found that the transaction [volume] on exchanges is highly correlated to the market, directly affecting the [revenue] of each specific exchange.”

The Token Insight team has created a quantitative method which allows them to “construct the valuation of exchange tokens structure,” so that they can perform standardized analysis for exchange tokens based on the exchange’s activities, and then be able to determine the “actual value behind each exchange.”

The report notes that Binance Coin (BNB) has had “a very strong positive correlation with the majority of exchange tokens in Q2 2020, but the rolling 30 Day correlation with other exchange tokens has dropped significantly.” Meanwhile, HitBTC’s HBC is exhibiting “an extremely negative correlation with the majority of others in Q2, [and] the rolling 30 Day has changed to almost all strong positive correlation intervals.”

Huobi Token (HT), FTX exchange (FTT), HitBTC (HBC), and Bitfinex’s (LEO) have “a relatively high rolling 30 Day correlation.”

Based on these findings, the report claims that Binance’s BNB token and OKEx’s OKB token are undervalued. Huobi’s HT and FTX exchange’s FTT are also currently undervalued, according to the report’s analysis.

HBC is valued at around what it should be, the report claims. Meanwhile, KuCoin’s exchange token, KCS is overvalued. BitMart’s BMX token is valued at approximately the price which it should be, given current market conditions, the report noted. It added that Bitfinex’s LEO token is overvalued.

These exchange based cryptocurrencies aim to serve mainly as utility tokens, meaning that they may be used to qualify for special discounts while conducting transactions on digital asset trading platforms. They’re really meant to encourage users to trade more, because investors are “rewarded” with exclusive offers that are not available to others who may not hold these exchange tokens.

Binance Coin or BNB is by far the most successful exchange token. It currently has a market cap of over $3 billion and is accepted in many other places or platforms, besides just Binance. It can be argued that BNB has emerged as one of the most widely-accepted cryptocurrencies.

While BNB has been successful, like many of Binance’s other initiatives, the exchange continues to offer services in multiple jurisdictions without authorization.

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