Institutional investors, high net worth individuals and hedge funds are getting into the action


After penetrating the hearts and wallets of crypto enthusiasts, digital currencies have started to capture the imaginations of institutional investors and hedge funds. High net worth individuals (HNIs) have also started experimenting with the new asset class to balance their portfolios. These entities, in the recent past, have allocated part of their capital to this new investment vehicle at a record pace. By some estimates, at the end of last year, some $ 15 billion in institutional assets under management were allocated to the crypto asset class.
Big players like JP Morgan Chase, America’s largest bank, have already stepped into the game. He has considered issuing debts linked to cryptocurrency-focused companies. Goldman Sachs has highlighted a disproportionate increase in demand for digital currencies from institutions while restarting its cryptocurrency trading desk to help clients trade bitcoin futures. PricewaterhouseCoopers also partnered with the Alternative Investment Management Association and Elwood Asset Management to conduct a survey to understand the possible movements of traditional hedge funds in this new area.
Last year, global crypto hedge funds had around $ 3.8 billion in assets under management last year, nearly double the amount in 2019. By some estimates, crypto hedge funds with more than 20 million dollars in assets under management fell from 35% to 46%. Analysts believe it won’t take long for these numbers to rise exponentially, given the voracious appetites of hedge funds and institutional investors.
With this in mind, ZebPay, India’s premier cryptocurrency exchange, has launched the country’s first over-the-counter (OTC) electronic bureau for high volume traders and institutional investors globally. .
The solution is aimed directly at high net worth individuals, organizations and trading companies whose needs are of a different nature given the nature of these transactions. The OTC desktop is a user-friendly solution that offers one-click or one-click execution. More importantly, this is done in record time on tight spreads without any withdrawal fees. In addition to having a trading interface that leverages the best algorithms to facilitate trading for users, integration with other systems is also available through Application Programming Interface (API) for brokers, institutions, quantitative funds and algorithmic traders.
What sets the solution apart is that it aims to offer “deep liquidity” for a whole range of cryptocurrencies at competitive rates across multiple pairs of transactions. In other words, assets can be traded against each other on the stock exchange.
In an interview with Mint Journal, Avinash Shekhar, ZebPay Co-CEO, said, “ZebPay aims to create a robust crypto ecosystem and a multi-faceted business where the needs of retail and institutional investors are seamlessly met. With ZebPay OTC Desk, we respond to the growing institutional interest in crypto globally and in India. Like other ZebPay products, the OTC desktop also offers a streamlined and optimized trading experience coupled with personalized support, but specifically for higher volume traders. This will encourage the adoption of crypto in the country and help create a brand for India as a major player in this emerging space. “
Lines of credit, for 24 hours after a transaction is settled, are offered with minimum collateral requirements. Transactions can be executed in real time without the need to “pre-fund” the account. There is a range of order types, including Immediate or Canceled Orders (IOC) and Time Weighted Average Prices (TWAP) which are specifically designed to meet personalized and tailor-made requirements. A myriad of fiat currencies and stablecoins are supported, including US Dollar, British Pound, Euro, Singapore Dollar, Dirham, Australian Dollar, Tether (USDT), and USD Coin ( USDC).
As Bitcoin hit an all-time high at the start of the month, interest from institutional investors is expected to only increase and services like ZebPay’s OTC desk meet a significant unmet need.
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