Traditional Traders Show Growing Interest in Crypto
Traditional Traders Show Growing Interest in Crypto
A report made by Acuit shows that Bitcoin and Ethereum derivatives are a growing involvement inside institutional firms.
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A survey published on March 31 revealed that senior trading executives believe that large companies in the business organisation would be interested in taking reward of the recent crypto plunge, specially Bitcoin (BTC).
According to the Adoption of Digital Asset Trading report published by Acuiti management intelligence platform, about 100 venues capable of trading cryptocurrencies have launched for institutional clients.
The survey shows greater adoption of digital assets among sell-side service providers (26%) than traditional trading firms (17%). However, it clarified that the adoption rates are limited to the CME or Bakkt.
Bitcoin and Ethereum derivatives are of major interest
All the crypto trading firms that were studied in the report realized that there was a growing involvement in Bitcoin derivatives. About 57% of traditional trading firms have traded Bitcoin, while 29% traded Ethereum (ETH) derivatives.
One of the findings of the survey is that although XRP is being ranked as the eighth nigh popular digital asset, XRP/USD was ranked fifth in the ranking of the preferred cryptocurrency pair within institutional firms. Their top three main considerations are liquidity, volatility, and arbitrage opportunities.
Future looks vivid despite security concerns
One of the biggest concerns among all trading institutions surveyed, including those withal waiting to merchandise digital assets like cryptocurrencies, was the security vulnerabilities of exchange and fears over hacking.
Another concern detailed in the report is fearfulness of reputational impairment, which is why many trading institutions do not desire to offer digital avails among their portfolio.
Although the survey still believes that adoption rates remain low, the future looks vivid in terms of adoption. 97% of traditional trading firms are because trading digital assets within the next ii years.
Source: https://cointelegraph.com/news/traditional-traders-show-growing-interest-in-crypto
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