A lot of people in the crypto community agree on one thing, in order to make the price of bitcoin rise we are going to need the mass adoption to take place and in order to achieve this we need institutional investors to step in the game. There has been a lot of talk around the subject of traditional investors and banks stepping in but are these jus roomers or is the mass adoption closer than we think?
Back in April the roomers where at a peek. “institutional investors are working on maturing the cryptocurrency market”. But unfortunately, since than the price of bitcoin has plummeted by more than half and the situation has gotten a lot worse. Quite recently the SEC once again decided to delay the decision on a proposal for a Bitcoin ETF.
The head of the crypto-focused bank Galaxy Digital in Europe said, “I see a great message of hope in the institutional adoption that’s happening right here, right now”. Considering Galaxy Digital has lost over 136 million USD in the past six months out of their crypto holdings the statement might not be a clear view of the future but more of a positive way of thinking.
Still this way of thinking might be the right one considering the steps being made by some of the big trading companies. Coin base recently quietly opened a new trading desk where rich individuals can buy large numbers of Bitcoin. And crypto trading platform Poloniex has opened its doors for trading services for institutional investors. The SIX has also announced they will be adding a cryptocurrency fund called HODL5. The fund will launch in a couple of days making big news and a major progress in the crypto community.
A former blockchain lead at Barclays and co-founder of fintech consultants 11:FS called Simon Taylor thinks differently. “the institutions are coming is a great story but I can introduce you to some people who were on the inside who have now left, it’s all bullshit”. He also states that the banks are being a lot more sceptical than is made out in the media.
Some just don’t see the potential crypto has and others just stay positive for as long as it takes like Morgan Creek Digital Assets, an institutional manager which has made a 1 million dollar bet that a basket of cryptocurrency will ou5perform the S&P 500 over the next ten years.
It might seem quiet on the subject of institutional investors joining the crypto community but soothing is less true. The potential crypto has is huge and one day banks and investors are going to realize it. A lot of preparation is being made in order to be ready when they decide to jump in until then we are going to have to be patient and HODL.