Huobi Global Shares Insight on Institutional Trading This Year

Huobi Global has seen what it classifies as “an influx of traditional and institutional traders” joining its platform and utilize the Futures marketplace. Because of this, the platform saw a significant increase in Futures and Swap Trading Volume, according to a press release, despite the offering launching in just April.

The group claims that around 30-40% of this trading is institutional trading, and this is even during a time where the world is facing a massive pandemic. But why is this the case?

Ciara Sun, the VP of Huobi Global Markets, shares some thoughts on the matter, stating:

“The price volatility and high liquidity of digital assets are especially attractive to investors. The crypto market is unique in that it can fulfil both demands in liquidity and volatility. For example, traditional investments like real estate have price volatilities but lack of liquidity. Foreign exchange markets have high liquidity but lack price volatility. Investors see arbitrage opportunities in crypto as an emerging market. An above average range annual return can be seen as good performance in the traditional market, but is actually a quite mediocre return in the crypto derivative market.”

Essentially, despite the market being volatile, many high-income traders take that as a good sign and are interested in pursuing the market.