Traditional Traders Are Getting An Appetite For Bitcoin

Traditional Traders Are Getting An Appetite For Bitcoin

The traditional stock trading community is, so far, acting quite cautiously when it comes to crypto and Bitcoin. However, it would now seem that traditional traders are warming to crypto. Specifically, a fresh survey reveals that senior trading executives are bullish on Bitcoin’s future.

A growing interest in crypto and crypto derivatives

This survey comes from the Acuiti management intelligence platform’s “Adoption of Digital Asset Trading” report. Moreover, the report notes that around 100 venues capable of trading cryptocurrencies have already launched for institutional clients.

Additionally, the survey also reveals that traditional trading firms are still behind sell-side service providers’ crypto adoption. For example, the survey states that roughly 17% of traditional trading firms have already begun adopting digital assets. Nevertheless, this number is already 26% among sell-side service providers.

What’s more, all crypto trading firms taking part in the report state that there is a growing interest in crypto derivatives. Roughly 57% of traditional trading firms have traded Bitcoin derivatives, and around 29% have traded Ethereum derivatives.

The survey also found that XRP, Ripple’s altcoin, is proportionally speaking more popular among institutional firms than among cryptocurrency users. 

97% of traditional trading firms are looking to trade crypto 

Nevertheless, there are still some bumps in the road ahead to greater crypto adoption among traders. The top concern in trading institutions’ minds, according to the survey, was potential security vulnerabilities and the risk of hacking.

Moreover, trading institutions also note that fears over damage to their reputation are keeping them from offering digital assets in their trading portfolio.With that said, however, it is clear that trading institutions are looking for a way to incorporate digital assets into their offerings. 

For example the survey finds that a whopping 97% of traditional trading firms are considering trading digital assets in the two coming years. This would seem to indicate that traditional traders are becoming highly interested in cryptocurrencies and Bitcoin.

Gauging the crypto interest of institutional investors is paramount to understanding the institutional demand for cryptocurrencies. Although there are many possible roads to mainstream adoption, greater trader adoption would be a good start.

Furthermore, institutional traders could also balloon the price of different cryptocurrencies. 2019 saw a lot of talk about crypto ETFs, which would be suitable crypto investment vehicles for institutional investors. As such, these could facilitate a massive influx of capital into the crypto markets.