The entry of institutional players into the cryptocurrency sector marks a transformative phase in the financial landscape. The implications of institutional crypto involvement extend beyond mere investment, influencing market dynamics, liquidity, and the overall maturation of the crypto industry.
This landscape holds a significant impact on the broader acceptance and integration of digital assets into mainstream finance.
Today, many traditional companies from the financial and tech sectors actively join the crypto space and engage in institutional trading or investment. Let’s find out how they ended up with millions of dollars worth of Bitcoins.
Institutional Crypto Trading: Names and Numbers
Technological companies engagement:
- Active participation of institutions in the crypto sector started in August 2020, when the MicroStrategy technological company’s chief bought $250 million worth of Bitcoin and $175 million more one month later.
- In October 2021, Square payment processor bought $50 million BTC.
- In February 2021, Tesla bought $1.5 billion BTC.
MicroStrategy is still the number one Bitcoin holder, owning 158,400 bitcoins as of November 1, 2023. Tesla holds 10,725 bitcoins as of September 2023.
Another category of companies that hold the largest crypto are cryptocurrency organizations engaged in mining. They validate transactions in the Bitcoin network and receive rewards in BTC in return. According to Coinmarketcap data, the largest BTC miners by market cap are:
- Marathon Digital Holdings
- Cipher Mining
- Riot Blockchain.
For long-term investments in BTC and other digital assets, a company just needs to create a crypto institutional account on one of the largest platforms such as WhiteBIT or Coinbase. These exchanges are open for cooperation with institutions and offer a variety of opportunities, such as trading with large liquidity, market maker crypto exchange services, bonuses for brokers, token listing, etc.
The increasing number of companies tapping into crypto spurs the development of institutional services such as custody solutions, trading tools, compliance, reporting tools, analytics, customer support, etc.
The influx of institutional players into the cryptocurrency sector signifies big changes in the financial landscape, driven by factors like regulatory clarity and advancements in market infrastructure. Notably, prominent tech corporations and financial entities, such as MicroStrategy, Tesla, and Square, have actively engaged in institutional crypto trading, acquiring substantial amounts of Bitcoin.