According to german investment advisors and analysts, crypto securities may overshadow direct cryptocurrencies trade.
With the start of new investors have been trying their best to buy and sell Bitcoin or bitcoin linked securities. According to Deutsche Borse, a daily average of euro 57mil worth of trade was recorded at Bitcoin Exchange Traded Crypto (BTCE). According to Borse, the stats were from the first ten days of 2021, later on, the charts were even higher.
A similar trend was observed in the trade market capital of United States, Wall Street. Grayscale Bitcoin Trust, who similar to the german company records daily crypto stats. According to its data, in the first two weeks of 2021 there was an average daily trade of about $1 billion. Compared to 2020, the daily stats were nine times higher in 2021.
The increasing rise of investors trading in securities of cryptocurrencies is starting a new trend of investment in the trading world. Analysts said that the buying of securities is actually the depiction of investors’ minds, showing disbelieve towards the crypto market.
BTCE saw an increasing surge along with Bitcoin with the start of New Year. Reportedly an increase of euro 15.5mil daily average was observed in December 2020.
BTCE trades in note said Stephen Kraus of Deutsche Borse, which is not that difficult to regulate. He believed that BTCE is the reason more financial institutions are joining in the Crypto trade world. He stated the BTCE defeats the counterpart risk coupled with the trade of Bitcoin. He further said such features increased the appeal of crypto to institutional investors. He also said that the securities could be traded without having to set up special infrastructures of unregulated crypto software.
Bradley Duke, issuer of BTCE said that he believed the institutions bought cryptocurrency as safe haven. He added that cryptocurrency had always been a Wild West investment but it had changed in the last few months. He thanked coronavirus to divert investors’ interest toward cryptocurrency as fiat currency began to devalue due to the stimulus package.
Mr. Duke concluded that in the next few months more products will be launched by another cryptocurrency. He also predicted a number of cryptocurrencies to be introduced sooner.