Institutional Investors and the Cryptocurrency Market: Analysis of Current Trends

14.07.2024

1122

According to analysts at Bitfinex exchange, the decline in Bitcoin (BTC) value in June-July 2024 resulted from weakened institutional investor activity. Bearish sentiment intensified in the crypto options market, with many traders predicting further weakening of BTC rates until mid-autumn 2024.

Resurgence of Interest in Crypto Funds

Despite the general pessimism, Coinshares noted a surge in investor activity testing the capabilities of crypto funds managing digital assets. From July 1 to 5, 2024, these instruments attracted significant funds, potentially indicating a revival of interest from major players in the cryptocurrency market.

The largest inflow of funds was observed in spot Bitcoin ETFs on the American stock market. Out of the total $441 million attracted by crypto funds, $398 million went to these instruments. This suggests that large capital took advantage of Bitcoin’s price drop to $54,000 to increase investments in this asset.

Global Distribution of Investments

Besides the US, investors in other countries showed significant interest in crypto funds. Crypto funds in Canada attracted $12 million, in Switzerland — $24 million, and in Hong Kong — $32 million. This indicates a global nature of the revived interest in crypto assets.

The only exception to the general trend was the German market, where there was an outflow of funds from virtual currency investment funds. In the last week of July, the outflow amounted to $23 million, which may be related to local factors or a more conservative approach of German investors to cryptocurrencies.

Despite the overall decline in Bitcoin value and the prevalence of bearish sentiment in the crypto options market, there is a resurgence of institutional investor interest in cryptocurrency funds. This may indicate that major players view the current situation as an opportunity for profitable long-term investments in crypto assets.

The SEC will cancel inspections of crypto companies in 2026.

The US Securities and Exchange Commission announced that it will no longer conduct separate reviews of crypto companies in 2026. The new approach, led by Paul Atkins, shifts the focus to asset security, data protection, and cyber resilience, and includes dialogue with the industry. The SEC also released updated guidance on classifying crypto assets based on the Howey Test, which could change the regulation of the digital asset market.

16.11.2025

New FSA rules for cryptocurrencies in Japan

Japan's Financial Services Agency is preparing a comprehensive reform of the crypto market: digital assets will become financial products, capital gains tax will be reduced to 20%, crypto exchanges will increase data disclosure, and banks will potentially be able to store and trade cryptocurrencies.

12.11.2025

Finland implements new cryptocurrency reporting standard

Starting in 2026, Finland will implement the CARF standard, requiring crypto exchanges and wallet providers to transmit detailed transaction data for international exchanges. The new regulations will affect hundreds of thousands of residents and tighten controls on cryptocurrency income.

08.11.2025

Conflict between banks and crypto exchange Coinbase

The ICBA is demanding that the OCC reject Coinbase's application for a banking license, arguing that it could harm traditional banks. Coinbase, however, believes the license will improve market transparency and not harm consumers. The application review will take up to 18 months.