When it comes to institutional investors there are still a lot of hurdles for some of them. E.g. the data feeds, something like the Bloomberg terminal in addition with cryptocurrency data. Since Bloomberg does use some data, like the TOP10 of Huobis price index, but not much more, it is a serious weakness of their service bandwith. Now a competitor (Refinitiv) plans to tackle this weakness of Bloomberg to get an edge in a very important and stark growing market of the future: Institutional Bitcoin investors.
Refinitiv is a company owned by the Blackstone Group LP (55%) and Thomson Reuters (45%). They made $6.1B revenue in 2017 and have 18,500 employees. Their “Eikon Terminal” is a direct competitor to the Bloomberg terminal through a new collaboration with the infamous BitMEX exchange.
Eikon Terminal With BitMEX’s Derivatives Data
The partnership between Refinitiv (Eikon Terminal) and BitMEX was assisted within the progress by CryptoCompare who are claimed long term partners of Thomson Reuters. It includes an integration of BitMEX derivatives trading data into the Eikon terminal. The BitMEX API, one of their highest priorizations, used by a lot of common traders already, will be connected with the Eiko Terminal. Refinitiv is about to deliver their customers (investors) an informational product they know from the “old” financial world to lower the entry barriers.
Outlook: Institutional Investors in Bitcoin
With traded monthly volumes in heights of billions (alone on Bitmex over $1.14B in April 2019) and a high price increase recently, Bitcoin will be probably an interesting topic for institutional investors again. Partnerships with products like this terminal can help to connect the worlds and to make an easy entry into the world of Bitcoin trading possible for the deep pockets. But when will this happen? The answer is: It already happens!
E.g. the digital asset investment report from Grayscale says that 66% of their invested funds came from “institutional investors”:
As more it’s getting easier for institutional investors to deal with the underlying technology and processes of trading & fundamental data of cryptocurrencies we should see an even higher influx of those over the next 1-2 years. Let’s hope for them they don’t end up on BitmMEX ripping a x100!