Institutional investors and their importance in the cryptocurrency market.
It is not very uncommon that the institutional investors are looking forward to an opportunity to invest or rather stake their money into the cryptocurrency industry because it is highly fluctuating and the Return On Investments can be maximized by day trading or long-term investing by hodling the cryptocurrency coins. By keeping a track of the price volatility in the cryptocurrency exchanges and a number of day traders make a decent amount of profit in the field and some of the cryptocurrency projects which are notably massive in their implementation and roadmap, the institutional investors are precisely searching for such kinds of investment.
In other words, a real-world practical working model would automatically attract institutional investors from all over the world. According to reports it is estimated that the institutional investors are gaining a lot of interest in the crypto domain these days. Below are 10 reasons quoted for the same…
1. A number of cryptocurrency organizations these days are offering custodial services to the institutional investors in order to safeguard their cryptocurrency funds, in the form of Cold Storage facilities. Prominent financial organizations like Coinbase as well as Goldman Sachs are introducing such services for Bitcoin and Ethereum.
2. Recently The Securities And Exchange Commission in the United States has postponed its verdict with respect to the initiation of Bitcoin ETFs. The results are speculated to be on the positive side, as they have postponed the verdict so as to have a deeper look into the matter.
3. This is not the end, the SEC further has 9 more similar applications which also remain pending. The experts predict that even this verdict would also be favouring the institutional investors. Therefore these institutional Investors must brace themselves for a whole new upcoming wave in the cryptocurrency market.
4. It is even being observed that many Governments, as well as financial regulators, are favouring the cryptocurrencies. This would indirectly help in a higher cryptocurrency adoption among the institutional investors as well. Hence the institutional investors need to tap the upcoming cryptocurrency boom which the world is to experience. With higher crypto regulations in place, the people would be opting for them with lesser hesitation.
5. With a firm framework with respect to the custodial services, many institutional investors will opt for the Crypto investment. As the state of the crypto domain was quite unregulated until now, the complete transparency from the SECs side is relieving, as the current KYC procedures are not so safe.
6. It is observed consistently at a number of prominent Blockchain summits and conferences that the government is shifting its perspective towards cryptocurrencies and Blockchain Technology, therefore, both fields are undoubtedly expected to rise. Therefore this is a great opportunity for institutional investors in order to grab the piece of cake.
7. Apart from the governments and financial organizations even the normal public masse also are realizing the underlying principle of the Blockchain technology and the cryptocurrencies. With greater understanding, comes greater exposure. Hence the public will opt to invest in them. Therefore it is a wonderful opportunity for the institutional investors to join the revolution.
8. The crypto domain is highly volatile currently and needs the required amount of stability which can only be achieved through long-term investment by the institutional investors and Venture capitalists. It would increase the market volume and decrease the fluctuations, therefore, rendering a more stable market.
9. The initiation of the Bitcoin Futures trading through CME and CBOE would legalize the investments in Bitcoin which is highly favourable for the institutional investors.
10. According to experts, the seasoned investors like the institutional investors enter the market when the prices have corrected themselves and are low. What better opportunity can an institutional investor find other than the present, as the cryptocurrency market is at it’s lowest levels.
Institutional investors along with care venture capitalist are some of the only personals, who can be effectively be relied upon, in order to expand and stabilize the cryptocurrency market by staking their investment in the domain. Although the crypto market is in its natal stages, it’s a due responsibility of the Institutional investors to help it grow.