Institutional investors are buying Bitcoin as of late 2020

Bitcoin (BTC) reserves at derivatives market brokerages have dropped to levels last seen before the market’s big slump in May.

Data from on-chain analytics provider CryptoQuant shows that as of 10 August, derivatives reserves at brokerages totaled 1.256 million BTC – the lowest amount since 11 May.

Institutions repeat the fourth quarter of 2020

With institutional interest returning once again to cryptocurrency investment instruments such as the Grayscale Bitcoin Trust (GBTC), these numbers show that major institutions did indeed increase their stakes in BTC during the brief recession.

“Big money is buying”, commented analyst William Clemente this week.

Brokerage balances prove the fact. Derivative platforms are experiencing a repeat of a trend last seen in late 2020.

Even during the most intense phase of the BTC’s bullish cycle this year, derivatives balances grew inversely – a declining balance characterized only the beginning of the rise to $64,500.

Bitcoin reserves at derivatives brokers. Source: CryptoQuant

“Since May 19, entities with 10K-100K BTC have added +269,450 BTC to their holdings ($12.1B),” Clemente said, highlighting other data as well.

“These entities have between $450 million and $4.5 billion of their allocated capital in Bitcoin.”

Entities growth chart that owns 10,000-100,000 BTC. Source: William Clemente/Twitter

accumulation in progress

Institutional investors were not discouraged by any compelling narrative, whether external or internal to the cryptocurrency universe, including China’s ban on miners announced in May or the ongoing saga of the US infrastructure bill.

Related: Bitcoin now buys 0.6 kilos of gold, asset hits historic low compared to Bitcoin

As the Cointelegraph previously reported, retail brokerage balances have been declining for some time.

On Tuesday, the brokers’ total balance was 2.44 million BTC, the lowest in three months.

Bitcoin reservation at all brokers. Source: CryptoQuant

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