Most institutional investors buy bitcoins on over-the-counter (OTC) platforms, TradeBlock analyst John Todaro said.
In his view, the activity of big players on such platforms is an indication that they do not want to influence the overall market. Buying BTC on OTC platforms does not exacerbate volatility as dramatically as it would if institutions were buying coins on centralised crypto exchanges.
Large financial institutions also prefer to use OTC because the purchase of cryptocurrency on such platforms is not as transparent as on exchanges.
The CryptoQuant team draws attention to the fact that some institutions are gradually moving to exchanges. This trend shows that they are no longer trying to remain anonymous and are not afraid to show that they have bitcoins.
Overall, however, it is too early to talk about a large-scale move away from OTC platforms by major players.
CryptoQuant CEO Ki Young-ju stressed that currently the lion’s share of bitcoin transactions is still made on OTC platforms.
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