The Power of Institutional Investments and the Perpetuation of Crypto Winter

2019-2-11 18:15

The influx of institutional investors is what the crypto community has been relying on as a source of inflow for the market. However, the crypto winter is still abounding and there does not seem to be an institutional player in sight. While there is plenty of interest from these types of investors, shown with the recent funding and M&A activity, there have been some roadblocks.

One of the most hopeful products that were meant to bring in newly interested investors with the Bitcoin ETF. However, the public watched as the SEC rejected nearly every proposal. VanEck ended up pulling their application during the shutdown, considering the work that needed to be done on it at the time. The intense volatility has been one of the major reasons that the bitcoin ETFs have been rejected.

In a recent publication at CoinDesk, the media website outlined multiple factors that the public needs to pay attention to, helping to understand what has gone so wrong with institutional investment funds. The writer reminds readers that most institutional investors are individuals, suggesting that they are driven by the retail functions of the industry. They add further that, if the investor's clients do not want the company to take on cryptocurrency, they will not either.

Retail investors are much different from institutional investors, but there has been no promise from regulators to protect them from fees. With this type of exception, there is a possibility that their funds would be pushed into cryptocurrency instead.

The fundamentals of cryptocurrency are improving at this point, which is another factor that the writer points out. Scalability is getting better, use cases are becoming more prevalent, and the overall regulation of cryptocurrency around the world is evolving in a way that allows for innovation without massive risks to investors. The conditions of the market, with the welcomed innovations and the maturity, could help.

However, the contrast between the evolution of cryptocurrency, paired with the diminished value of traditional stocks, could push institutional investors towards crypto as a safe harbor for their funds.

The final factor that CoinDesk brings to the forefront is the “herd mentality,” which is the suggestion that consumers will generally follow the trends of the group, though there’s plenty of exceptions. Basically, this validates the theory of a “wall of institutional money,” as the majority of institutional investors move as a collective.

Still, there has to be a trigger to make this transition, and there’s no way to tell what it will ultimately be. It could be a regulation to protect the new investors, a liquid product, or a well-trusted traditional name in finance that decides to take the plunge (like Bakkt of the Intercontinental Exchange). Whatever the cause it, many analysts and investors are undoubtedly hoping for anything to make a difference as soon as possible.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0012394 (-100%)

institutional crypto investors winter player sight seem

institutional crypto → Результатов: 126


Crypto.com Pauses US Institutional Trading Service Following Regulatory Pressure

Crypto.com, one of the world’s largest crypto exchanges, has halted its institutional trading platform for US clients. The release of this news comes in the wake the Securities and Exchange Commission’s (SEC) decision earlier this week to take legal action against two of the most well-known cryptocurrency exchanges; Coinbase and Binance. Shutting Down Institutional Service […]

2023-6-12 19:44


Standard Chartered Targeting Institutional Clients in Britain & Europe for its Crypto Exchange

Head of the bank's technology arm has a “strong conviction that digital assets are here to stay and will be adopted by the institutional market as a highly relevant asset class.” The post Standard Chartered Targeting Institutional Clients in Britain & Europe for its Crypto Exchange first appeared on BitcoinExchangeGuide.

2021-6-3 17:57


Prominent Investor: Crypto Bear Market Makes it Safe For Institutional Investors to Enter

Institutional investors are pouring in big bags of their money into the crypto world. And, a prominent investor believes it is the rightest time to do so. Garry Tan, co-founder of Initialized Capital, thinks crypto market’s bearish bias this year has reduced investment risks for new entrants, especially institutional investors.

2018-10-8 13:51


Industry Insiders: Institutional Money is Steadily Trickling into Crypto

According to multiple sources, there is already much more institutional money in the $220 billion strong cryptocurrency market that people might be aware of. Growth in OTC Trading Highlights Shift from the Retail to the Institutional The largest buyers of crypto were high-net-worth individuals who willing to take a risk on Bitcoin and other digital.

2018-10-1 23:00


Institutional Investors Betting on Crypto’s Long-term Potential

Analysts have been predicting the entry of big money from institutional investors into the cryptocurrency market would be the catalyst for the next crypto bull run. It looks like these predictions may have been correct as the latest data from a crypto firm shows a surge of institutional interest during May this year; a surprising trend considering […] Institutional Investors Betting on Crypto’s Long-term Potential was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-7-2 01:43


Фото:

$20 billion worth of crypto investment waits for custody streamlining positive nod.

Regulation Rumor has it vaunted, long awaited institutional money, big investment in crypto is coming. Also read: Troll Slayer: Derek Magill Defends Peer-to-Peer Electronic Cash Against Defamation Investment Whales Want Custody Assurance “There are a lot of investors where custodianship was the final barrier. This will unlock a big wave of capital,” hedge fund Multicoin

2018-6-22 07:13


Automated Crypto Trading App Makes Arbitrage Accessible To All

Cryptocurrency investors can easily optimize price differences from 19 exchanges. Automated trading software makes profit possible to those outside of arbitrage’s ‘closed loop’. June xx, 2018  London, United Kingdom: New and experienced investors looking to profit from cryptocurrency can now do so without relying solely on Bitcoin or Ethereum’s turbulent price fluctuations; thanks to Arbitao: a fully automated cryptocurrency arbitrage trading solution.

2018-6-22 19:00


Institutional Investors Move to Bitcoin ‘Inevitable,’ Says Wall Street’s ‘Crypto King’

‘Wall Street’s Crypto King’ Bart Smith is expecting institutional investors to move into the cryptocurrency market once regulations are clarified. Institutions Need Regulatory Certainty Smith runs the investment firm Susquehanna International Group which started investing in Bitcoin in 2014 and expanded in 2017 during the crypto boom.

2018-6-12 02:00