Private investors buy more Bitcoin than institutions

JPMorgan: Private investors buy more Bitcoin than institutions

Private investors buy a lot of Bitcoins via PayPal and Square.

Many retail investors are buying Bitcoin from mainstream fintech firms, according to a study by strategists at leading US investment bank JPMorgan Chase.

JPMorgan’s data shows that retail Italian Formula investors bought more than 187,000 Bitcoin through PayPal and Square this quarter.

Retail investors are actually buying more than institutions in total. JPMorgan analysts estimate that institutions bought 173,000 BTC in the same period.

JP Morgan analysed money flows from retail platforms and institutional exchanges such as the Chicago Mercantile Exchange and announcements from large funds about BTC purchases for this information.

Senior market analyst at Oanda Corp Ed Moya attributed the trading activity to social media, the current NFT hype and US bailouts. He told Bloomberg:

„Now that the Reddit-fuelled meme-share craze is cooling and other novelty items like digital artwork are fetching record sums, retailers are taking control. Some of them have also already received the US$1,400 relief payments.“

He added that so-called „meme share trading“ had knocked many retailers out of the running

Bitcoin, however, had remained overwhelmingly bullish and was their „bread and butter“ during the pandemic, he said.

Brian Vendig, president of MJP Wealth Advisors, suspects retail demand was driven by fear of missing out (FOMO). This was due to the recent wave of institutional investment in bitcoin.

Data from crypto market analysis website Glassnode confirms that retail investors are now indeed present. On 15 March, Glassnode noted a peak in growth in 2021:

„This is a strong indication that new retail investors have entered this space.“