Short-term BTC wrapper funds have been flowing in since July, with a total of $4.64 billion (about 6.2881 trillion won) flowing in until the end of last month.
On the 14th, the Korbit Research Center under the virtual asset exchange Korbit released a report titled 'Institutional Fund Trends: Bitcoin Election?' and analyzed the trends of virtual asset institutional investors' funds and the impact of the US presidential election. The Korbit Research Center divided the indicators of institutional investor fund inflows into four categories: △BTC wrapper (short-term) △CME BTC futures market (short-term) △size of crypto fund assets under management (long-term) △status of institutional investor support projects (long-term), and examined the trends over the past 3 months.
Short-term institutional investor funds saw outflows at the end of June, but showed an overall stable inflow trend until the end of September. BTC wrapper funds switched to inflows from July and a total of $4.64 billion flowed in until the end of September. In the futures market, the CME's share of the total open futures contracts increased, supported by the recovery of BTC prices and the inflow of leverage exchange-traded fund (ETF) funds. The fact that the CME futures share fluctuated at a stable level indicates that institutional investors are maintaining long-term demand and trust in BTC.
Long-term institutional investor funds showed a clear recovery. Both the size of crypto fund assets under management and venture capital investment increased, with a particularly large increase in investment in the Web3 sector. The Korbit Research Center analyzed that the increase in investment size suggests that blockchain technology has secured long-term growth potential.
The share of institutional trading volume on Coinbase has increased for two consecutive quarters. While both institutional and retail investor trading volumes decreased amid market consolidation, the decline in retail investor trading volume was greater. This shows that institutional investors' interest has been sustained even in the market adjustment.
The Korbit Research Center then analyzed the potential impact of the US presidential election on the market and suggested the future direction of the market. The Korbit Research Center explained that the correlation between the election win rate of the two candidates, Trump and Harris, and the BTC price has decreased compared to the past, as both candidates have taken a friendly attitude towards virtual assets.
Yoon-young Choi, head of the Korbit Research Center, said, "Since both candidates are pushing for additional tax cuts and large-scale investment plans, the fiscal deficit is likely to expand further." He added, "If the fiscal deficit expands, the value of the dollar may decline, which could increase the demand for alternative assets such as BTC."
- Reporter Kim Jung-woo
- woo@decenter.kr
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