We have explored, time and time again; the adoption of crypto in a myriad of industries; In health, finance, oil etc. we have also explored the benefits of crypto that are outstripping regular fiat currencies. We have urged you to invest now, while the prices are best to buy. And now, all over sudden, the prices are rising again, we might be up for a bull run
But today’s piece is not about the rising prices. It’s for you who have been waiting for institutional investors to venture in crypto. It seems like you missed the memo. Reports indicate that an overwhelming majority are all in. So, what are you waiting for?
94% Endowments Into Crypto Already
The news that Wall Street would never embrace crypto were greatly exaggerated. Reports coming in are claiming the exact opposite; 94% of endowments have already exposed themselves in crypto business.
In a survey by BitGo in collaboration with Global Custodian and The Trade crypto, 94% of endowments have already embraced crypto in one way or another. Majority of the endowments invested in crypto initiatives during the intense bear market.
The study further finds that in the last 12 months alone, 141 endowments ventured into the digital coin market. This indicates a growing interest in the crypto asset class by institutional investors.
Global custodian and The Trade Managing Director Mr. Jonathan Watkins says that these facts were fascinating, considering the publicized concerns over regulation, liquidity, and custody surrounding cryptocurrencies. Regardless of the debate, the investors showed no signs of walking away.
It’s comical to think that people were waiting all this time for financial investors to take their side on the matter. They were in all this time.
More data continue to show institutional investor interest in crypto. For instance, Grayscale and Morgan Creek digital have reported an inflow increase of capital from institutions in the past couple of months
Demand Rose During Bear Market
Gabor Gurbacs, a digital asset strategist and director at VanEck, says that bitcoin’s price in not of significant concern to institutional investors. Instead, the institutions are interested in the structure and transparency of investments. These features are only available in the crypto market and are deemed essential to any investments.
In the wake of this digital awakening. We are also witnessing significant firms investing in crypto. Facebook, for example, has a new crypto product on the way to be released later in the year. Fidelity, on the other hand, has decided to offer regulated crypto custodial services.
Wence Cesares of Xapo says that the 80% decline could have served evidence to investors that the asset class and industry behind it is real. The bear run wasn’t that bad after all
Could Institutions Fuel The Next BTC Wave?
Altcoins could be riskier when it comes to survivability and longevity. Regardless, institutions still make risky bets in the crypto markets. Even by betting on bitcoin, stakes are still very high.
Its common knowledge that the bull market of 2017 was fueled by retail investors who brought the figure to around $20,000. We cannot be sure, but institutions could lead the next wave.