Institutional Trading

Definition ∞ Institutional trading signifies the buying and selling of assets conducted by large organizations such as pension funds, mutual funds, hedge funds, and investment banks. These entities typically trade in significant volumes, often employing sophisticated strategies and requiring robust infrastructure for execution and settlement. Their participation in a market is generally seen as an indicator of maturity and liquidity. The requirements for institutional trading include regulatory compliance, secure custody, and efficient trade processing.
Context ∞ The increasing involvement of institutional trading in the cryptocurrency space is a frequent topic in market news, signaling growing acceptance and potential for broader adoption. Reports often focus on the launch of new crypto-focused funds, the development of regulated trading venues for digital assets, or statements from financial institutions about their crypto strategies. The influx of institutional capital can significantly influence market liquidity, price discovery, and the overall perception of digital assets as a legitimate asset class.