Consider an institution like an insurer or pension fund that wants to explore cryptocurrency. Maybe a major corporation would like to invest in some.BTCTo diversify its Treasury holdings. One thing they’re unlikely to do is announce their intention beforehand.That could drive up the price of the digital asset they are trying to buy.

Thus, there’s often a lag between a large institution’s action — purchasing $100 million in Bitcoin, say — and its public announcement of such. “Institutional participation flows in cycles,” Diogo Mónica, co-founder and president of crypto custody bank Anchorage Digital, told Cointelegraph. “By the time you’re hearing about a new company adding crypto, we’ve typically been talking to them for many months.”