Retail Traders Bought More Bitcoin than Institutions in Q1 2021: JPMorgan
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Retail Traders Bought More Bitcoin than Institutions in Q1 2021: JPMorgan

March 17, 2021      Jafrin Ahmed

Inflows from retail Bitcoin traders have exceeded institutional investment so far this quarter, according to data published by JPMorgan. Perhaps, the decline in Bitcoin institutional investors might have been the reason for the leading cryptocurrency to hold above $61,000.

Retail and Institutional Bitcoin Flows Balanced Out in Q1

On March 12, JPMorgan strategist Nikolas Panigirtzoglou published a report showcasing that retail investors bought around 187,000 Bitcoin this quarter compared to the 173,000 acquired by institutional investors.

Just last quarter, retail traders bought 205,000 Bitcoin compared to 307,000 BTC acquired by institutional players.

JPMorgan used the data from Square and PayPal to estimate purchases by retail investors. Additional data were sourced using announcements by institutions, Bitcoin futures trading, and fund flow for approximating the institutional purchases.

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Despite the domination of institutional investors in the recent quarter, the flow has been equally balanced:

“While the bitcoin flow picture was dominated by institutional investors during Q4 2020, the flow picture has been more equally balanced between retail and institutional investors in the current quarter echoing Q3 2020.”

For instance, in the current quarter, retail and institutional players bought Bitcoin nearly equal at $7.5 billion each.

While, in the previous quarter, institutions bought Bitcoin about 60% greater than retail purchases, at $6.2 billion compared to $3.9 billion.

In the quarter before that, purchases again were nearly almost equal, at $2.2 billion for retail and $1.9 billion for institutional.

Even though institutions were heavy buyers in Q4, so far outpacing retail investment. But by now, both retail and institutional bitcoin flows are more equally balanced compared with Q4.

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Bitcoin Up By 990% Over the Years

The data from JPMorgan estimates that investor interest in bitcoin is no longer being dominated by institutional players, as was the case last year.

Bitcoin soared up over $60,000 this weekend for the first time since the $1.9 trillion bills of pandemic relief were passed by President Joe Biden, then fell down on the same weekend. Despite this, the leading cryptocurrency over the past year has increased by approximately 990%.

#Bitcoin #Institutional BTC Investment #Retail Bitcoin Investment
Jafrin Ahmed
Jafrin Ahmed

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.