This is the sixth part of the topic. There are a lot of events in the history of Bitcoin which help the Bitcoin market to grow to the level that we can see today. But the first future contracts were a milestone and groundbreaking event in the history of the Bitcoin network. I have explained 5 impacts of this event in my last Posts. Today I would like to share the part of the institutional investors after that event. After this event in 2017 institutional investors came into existence and became part of the Bitcoin system that was the success behind the growth of this coin. Let's get started.
The retail investors group was the main investing part of the Bitcoin market earlier. Before the launch of Bitcoin futures, much of the trading volume in the crypto market came from retail investors. The introduction of futures provided institutional investors with a new way to engage with the market. Hedge funds, asset managers, business organizations, crypto-based institutions and other large players could now participate in Bitcoin trading without directly owning the asset. They preferred to avoid handling Bitcoin as many risks were associated with it. For institutional investors, futures contracts offered a level of transparency and regulation that was absent in the crypto exchanges of the time.
This allowed them to trade with more confidence. After the event the whole future market was overseen by the CFTC. The arrival of institutional investors brought new liquidity to the market and helped to stabilize Bitcoin’s price over time. That was the milestone for the future as we can see the good stability of the price with a huge number of investors in the market. Bitcoin ETF is come into existence in 2024 but early days that event help to come into this event as many institutional players were engaged with this Network after that big event for the creation of Bitcoin’s future contract.
~ Regards,
VEIGO (Community Mod)
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This is another part of the series that you have been writing since last few days about Bitcoin features contract and as always it is another piece of knowledge which is learningful and interesting read.
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