The recent 30%+ drop in all major crypto prices over the past few weeks has suggested that capitulation is in full force. This is nothing new in the investment landscape, as retail investors panic large institutional investors accumulate up during bear markets. And there is evidence suggesting that institutions, whales and even banks are buying the dip while individual investors are losing their potential future profits and selling low.
Grayscale is the most significant institutional investor in Bitcoin, holding an estimated 1% of the entire circulated supply of Bitcoin. This is estimated to be worth close to $1B in value today. Grayscale is a digital currency asset manager that was established by Digital Currency Group in 2013. Grayscale’s Bitcoin Investment Trust now holds over 203,000 Bitcoin
As you can see by the chart, they have been steadily buying all year, as the price continues to drop they continue to load up.
JP Morgan (Yes - Jamie Dimon's JP Morgan!)
Seemingly unaffected by Dimon's vitriolic statements about Bitcoin, and his promise to fire anyone from his company bought buying crypto - According to public records of Nordnet trading logs, the two associated firms JP Morgan Securities Ltd., and Morgan Stanley bought roughly 3M euro worth of XBT note shares back in September.
Goldman Sachs, HSBC, and Barclays
From the same source, Goldman Sachs and Barclays were also big buyers (and continue to do so) back in September as well.
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Credit to news.bitcoin.com[/caption]
Whales through OTC Markets
As buying volumes on exchanges have decreased as the price goes down, OTC or over the counter transactions have been growing like crazy. Larger buyers typically make their purchases through the OTC desks.
According to an article on Bloomberg,
OTC volume is growing and it's a clear signal that retail investors are selling their Bitcoin to larger investors.
“We’ve seen triple-digit growth enrolling in our OTC business," said Jeremy Allaire, chief executive office of Boston-based Circle Internet Financial. “That’s a big growth area."
OTC buys don't create market signals like on-exchange purchases, and keeps the price depressed as the buy signal doesn't get broadcast.
ETF Products in other Countries
While the entire crypto community waits for an ETF ruling by the SEC in February of 2019, similar ETF products have already been approved around the world and the buying volume has been significant. The Swiss ETF, for instance, is seeing record volume highs and inflows in the last few days.