Crypto Update: The ebb and flow of institutionalisation Crypto Update: The ebb and flow of institutionalisation Crypto Update: The ebb and flow of institutionalisation

Crypto Update: The ebb and flow of institutionalisation

Cryptocurrencies 5 minutes to read
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank Group

Summary:  Cryptocurrency prices are in free-fall with miners and hedge funds starting to exit the space.

This week the entire crypto market cap fell by 27% to around $150 billion. Additionally, Ethereum fell 32% after breaking the $200 support level, and Bitcoin fell in line with the market with a decline of 28%. Over the past week Bitcoin experienced its largest difficulty drop in history. This means that miners who secure the network are leaving the network, which is mainly driven by the decrease in profitability of mining bitcoins. This difficulty is often viewed as an indicator of the health of the network.

New crypto tracker delayed

This week the SIX Swiss Exchange is set to launch the first ever exchange traded product (ETP) that tracks a basket of cryptocurrencies. The Amun Crypto ETP would track the top five most liquid cryptocurrencies weighted by market cap. The basket is comprised of 50% Bitcoin with the rest being divided among XRP, Ethereum, Bitcoin Cash and Litecoin, respectively. In fact, trading was supposed to start November 22, but sources say that one of the clearing parties backed out at the last minute. Trading of the product should begin before the end of the week.

Bakkt confirms launch date

In a blog post Bakkt, the much-anticipated cryptocurrency futures exchange, announced that it will push back its original launch date of December 12. The new launch date is set for January 24. The cryptocurrency market is hoping that the launch of physically settled daily futures will lift demand for the liquid supply of bitcoins. This demand could potentially provide support to the falling cryptocurrency prices. The delay of the launch of the futures certainly did not help to support the price of Bitcoin.

Hedge funds may start to close shop

Morgan Creek Digital founder Anthony Pompliano stated that he believes many crypto-focused hedge funds will choose to shut down their funds. Many have a high-water mark from last year’s performance that they must surpass to receive performance fees. Pompliano states that many will decide to close their funds and return capital to investors. He also mentions that ICOs, which are recently under-pressure from regulators, will be required to refund investors. The unwinding of cryptocurrency positions from ICOs and hedge funds to pay back investors could provide selling pressure to the market over the coming months.


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
United Kingdom

Support Centre
For existing clients, please click here to request support via the Support Centre.

Have a question about our products, platforms or services? Visit the Support Centre to find answers for our most frequently asked questions. If you are still unable to locate an answer to your question, you will also find contact details for your local Saxo office to speak with a representative.

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.