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The ‘Whales’ are Flocking to Bitcoin

More and more whales are entering the market for cryptocurrency protagonist Bitcoin (BTC). The highest Bitcoin price recorded was $19,783.21 on December 17, 2017. Buoyed by a surge in demand from institutional investors, on November 18 the Bitcoin price touched $20,000. In a situation where the Bitcoin investment market is being restructured centered on institutions, we look into how regular individuals can invest in Bitcoin.

Most recent Bitcoin bull market mainly due to institutional investor inflow

One of the main reasons given for the recent Bitcoin bull market is increased demand from institutional investors. Citing data from cryptocurrency analysis firm Santiment, FXSCrypto concludes, “A massive increase of $BTC whales has accompanied the sustainable growth seen in October and November. Santiment shows that since mid-October, the number of addresses holding from 10,000 to 100,000 rose by 7%”.

Whale wallet growth trend [Source: FXSCrypto, Santiment]

John Todaro, Director of Institutional Research at TradeBlock, also identified institutions as the main drivers of the recent Bitcoin price surge: “The primary drivers recently have been from institutions. Additionally, spot volumes at institutional platforms have risen considerably — LMAX digital, which is primarily focused on institutional block traders, recently recorded its highest volume month ever. Retail investors have been noticeably absent throughout this bull run. They likely will enter the space at higher levels when mainstream media outlets begin covering the space in earnest.”

The growth in operating volume of Grayscale’s main cryptocurrency asset management product Bitcoin Trust (GBTC), also underlines this. Access to GBTC is limited to those fulfilling investor requirements such as having over $1M in net assets, an annual income exceeding $200,000, and an entry-level stockbroker’s license. Along with these credentials, a minimum investment amount of $25,000~$100,000 means this product can be used as an indicator for high-value and institutional investors entering the Bitcoin market. On November 17, Grayscale’s total assets under management for the first time reached $10bn. As of the 18th, the company’s main product Bitcoin Trust (GBTC), reached a scale of BTC 513,393.

International media outlets are also reporting that the Chicago Mercantile Exchange (CME) recorded its highest-ever volume of Bitcoin open interest futures contracts. According to data by Skew, while the price of Bitcoin climbed to $18,000, CME’s open interest Bitcoin futures contract balance surged to over $1bn — its highest-ever volume. Coinmarketcap reports a 20% month-over-month increase in open interest contracts in November, a much higher figure than the average open interest contracts in September. If the open interest contract balance increases — meaning the total volume of derivatives that have not been settled yet — this is a signal that more capital is flowing into the market for the underlying asset Bitcoin.

Jay Hao, CEO of crypto exchange OKEx, explained how Bitcoin drew demand from institutional investors using investment firms and hedge funds: “Bitcoin is already up over 115% YTD compared to gold at less than 30% and the S&P at around 8%. Bitcoin is offering investors a real chance to make gains on their money rather than risk-off assets like cash bringing back negative yield. This is something that cannot be ignored.”

According to global asset profit rate statistics published by Chinese cryptocurrency media outlet Golden Finance, Bitcoin was the most profitable asset from January through 18 November 2020. In the second place, the stocks of Facebook, Apple, Microsoft, Amazon, Netflix, and Google (FAAMNG) reached a combined 44.04%, whereas COMEX gold stood in third place with 24.2%.

The easy way to invest in Bitcoin — ‘Haru’

So how can individual investors invest in the growing Bitcoin market? The optimal investment method is to use a crypto fund.

As seen by the growth in the crypto fund run by Grayscale, institutional investors are using Bitcoin like gold — as a means to escape market uncertainties and for arbitrage. Individual investors should also approach Bitcoin from this perspective.

However, existing cryptocurrency funds such as Grayscale and Pantera Capital have strict investor certification requirements and high minimum investment amounts, making it difficult for the general public to invest. This is where Haru’s BTC investment product offers an alternative.

Haru’s BTC investment products are structured to pay interest on crypto deposits, making it easy for regular individuals to invest. They include Haru Earn, Haru Earn Plus, and the newly launched Haru Invest (BTC). Haru Earn offers 7–8% interest in return for no lockup period, whereas Haru Earn Plus has a lockup period of up to one year but pays out 15.5% APR every day.

Developed for more aggressive investors, Haru Invest (BTC) is an approachable cryptocurrency fund with investments starting from just $10. The basic lockup option is three months, which can be extended. There are no minimum investment amount or investor certification requirements, and the annual target return is 25% or above.

Haru Co-CEO Hugo Lee stated: “As the buying trend from institutional investors is expanding, it sends a positive signal for Bitcoin prices. We expect market demand for related investment products to increase.”

Haru is a trusted digital asset management platform. We provide up to 16% earn rates for monthly deposits of BTC, ETH, USDT, and Terra KRT. What we offer aims to shift a paradigm of investment — investing in crypto can be stable and comfortable, too. Crypto in, more crypto out. It’s that simple.

Official Website: www.haruinvest.com

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