The amount of Bitcoins bought by retail traders is higher than what institutional investors are buying, according to the latest report published by US investment conglomerate JPMorgan Chase.
In particular, according to the document prepared by the bank's strategists, retail traders are making use of fintech companies' services to acquire large amounts of the largest crypto on the market. These have purchased more than 187,000 Bitcoins this quarter through Square and PayPal, a figure higher than the 173,000 BTC the bank estimates institutions have bought.
To reach this conclusion, the authors of the paper have analyzed trades on retail platforms and exchanges for institutional investors, such as the Chicago Mercantile Exchange, as well as announcements made by large funds about BTC purchases.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
It looks like that the frenetic activity by retail investors in the Bitcoin market could be partly related to the NFTs (non-fungible tokens) trend and stimulus payments made by the US government to its citizens, Oanda Corp senior market analyst Ed Moya has said.
Meanwhile, Brian Vendig, president of MJP Wealth Advisors, believes investments by retail traders are driven by FOMO following the recent wave of institutional investment in the leading cryptocurrency.