The highly anticipated institutional adoption of blockchain is here with us. This is according to Brian Kelly, a portfolio manager at BKCM Digital Asset Fund.
The MBA graduate at Babson F.W Olin School of Business also revealed Fidelity Investment’s plan to roll out custodial solutions for cryptocurrencies. Kelly was speaking on CNBC’s Fast Money show. He also added that investors were individually starting to purchase more digital currencies, and the crypto markets were attracting huge institutional interest.
TD Ameritrade Invests In ErisX
TD Ameritrade is the latest to join the crypto bandwagon frenzy. The institution is a provider of the world’s largest online trading platforms and its latest interest in crypto activities is just the beginning.
As per its website, TD Ameritrade Holding has invested in ErisX, a trading platform based in Chicago focused on providing crypto founded spots and contracts. Kelly confirmed that ErisX’s management would soon be offering digital asset trading services via institutional grade exchange for its retail customers.
The fact that these institutional funds are now flowing into the bitcoin market means the cryptocurrencies are about to blow up again. The Fidelity Investment firm itself is worth over $2.6 trillion in Assets Under Management with a vast number of institutional customers.
Other institutions like Facebook and Bakkt are also planning to join. Back on one side is planning on a bitcoin future trading after approval of a bitcoin ETF. And Facebook is working on its own crypto. Brian argues that the sudden spike in bitcoin’s price is a great appeal to new investors in the crypto world.
Bitcoin Mining Reward Halving Is Fast Approaching
Bitcoin rewards are halved after every four years. The current cycle ends in 2020, a year in and a year out, generally at the beginning of the last stage before the halving. At the moment, there is lots of demand for bitcoin, given its rising prices and the imminent supply cut period.
Brian cautioned against investors sizing the situation inappropriately. Brian thinks it’s still possible for bitcoin to have price retracements, which could be a blow to investors.
Kelly also shared her thoughts that cryptocurrency investment should be done responsibly as it’s still a risky venture. Buying when things are great and at the top can be a risk for investors. Thus it’s recommended that investors invest in what they can afford to lose.
Brian Kelly also disclosed that he had spoken to lots of miners around the world, and they revealed that they had sold enough bitcoin to sustain their operations for the next year. That being the case, most miners will now be hoarding crypto as they expect bitcoin value to increase significantly.
Bitcoin Surge Nears An All-Time High
According to Cryptocompare, the middle of May saw bitcoin’s price surge a record high of $8300. Now, the Weiss crypto rating’s chief analyst Juan Villaverde believes bitcoin to be a big buy Although Villaverde also suggested that the flagship cryptocurrency could drop to $4400.
Why BTC Is A Good Buy
The use of Bitcoin is at an all-time high- 450,000 transactions a day. That’s 3x the number of transactions in April 2018. A few more transactions and it will eclipse December 2017 figure of 490,000.
As transaction volumes have increased, fee on the network is at its lowest.
Segwit technology has enabled a more significant size of the bitcoin’s block size.