Institutional money is historically seen as a major future force that will boost the cryptocurrency market. The CME Group is about to launch its CME Bitcoin Options platform on Jan 13, and according to a group of analysts from JPMorgan Chase, the platform will attract major interest.
According to a Bloomberg article published on Jan 10, the JPMorgan analyst group led by Nikolaos Panigirtzoglou predicts ‘high anticipation’ from market participants who will join the platform. Moreover, an ‘unusually strong activity’ was detected by the group over the past few days.
CME Bitcoin Options – is institutional money on the way?
The new activity levels propose that institutional investors have changed their behavior and are looking forward to participating in CME’s platform. If the prediction turned out in CME Group’s favor, it would create a striking contrast compared to its competitor Bakkt, who launched a Bitcoin futures platform with initially small trading volume.
At the time, the platform’s failure to attract institutional interest led to a plunge in the crypto market. However, historical data points out that Bitcoin futures trading platforms require a lot of time before they attract significant volume. Accordingly, even CME’s bitcoin futures platform launch in December 2017 experienced a period of low trading volume.
Bitcoin thrives despite lack of institutional interest
Although JPMorgan successfully noticed the rising level of futures trading activity, the firm does not connect the rise with Bitcoin’s Jan 3 pump. At the time, the BTC/USD trading pair bounced from $6,900 and reached $8,400 by Jan 8, resulting in a 21% price increase.
Cryptocurrency analysts connected the pump with recent geopolitical tension. As CryptoPythia previously reported, BitPay executive Sonny Singh recently stated that the rise occurred due to the events in the past weeks. The end result was that a small number of investors entered the crypto space.
The executive believes that a similar set of events will cause Bitcoin to surpass its all-time high of $20,000, noting that something ‘unforeseen’ needs to happen for Bitcoin to move faster.