Cryptopolytech Public Press Pass
Title: More Bitcoin Holders Are Heading to Cold Storage
Originally reported on etfdb.com by ETF Database
01000000 – $Mo’Money$ | Crypto |
•| Economy |•| Business |•| Finance |•| MacroEconomics |•| Crypto |
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With cryptocurrencies still in their nascent stages of development, safety is always a primary concern. As such, more bitcoin holders are migrating their cryptocurrencies from a public exchange to offline storage or “cold” storage.
Heavy sell-offs in the cryptocurrency market forced the way investors think when it comes to safely storing their crypto. A number of companies have gone asunder, making investors wonder whether their crypto is safe on a public exchange despite growing trust over the years.
“Developments across the crypto market in 2022 have forced many to reevaluate their risk management practices as collapsing decentralized finance protocols and bankrupt centralized finance platforms have highlighted the truth of not your keys, not your crypto,’” a Kitco News article said.
“As a result of funds being locked or lost, Bitcoin holders have embarked on a mission to withdraw their tokens from exchanges at an astonishing rate, with the month of May being the only exception in all of 2022,” the article added.
The start of 2022 saw a trickle of sell-offs and ultimately reached a zenith in June as the crypto market followed stocks on the way down. While the crypto market has steadied as of late, there still appears to be a steady stream of migration from exchanges.
“June saw a net outflow from exchanges of 119,000 bitcoin, the highest outflow since November 2020. July also saw massive outflows, with 96,000 bitcoin being withdrawn from exchanges. The exchange outflows have continued in August, with a net of 65,000 bitcoin withdrawn in the first 22 days of the month,” Arcane Research said.
As an alternate to placing bitcoin on a public exchange, investors can also opt for getting exposure to futures contracts in bitcoin via the ProShares Bitcoin ETF (BITO ). With cryptocurrency regulation still in its infancy, BITO will allow investors to get bitcoin exposure on a traditional market exchange, thereby reducing the risk of a public exchange going out of business.
Furthermore, BITO is actively managed, giving investors dynamic exposure to the bitcoin futures market. This puts portfolio management in the hands of market professionals who can increase or reduce exposure to contracts given the current nature of the ever-changing, volatile crypto market.
For more news, information, and strategy, visit the Crypto Channel.
‘News of the Day’ content, as reported by public domain newswires.
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