,author:How Institutional Investors Are Changing the Cryptocurrency Market,author:Tanzeel Akhtar, compiled by: Qi Ming
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Bloomberg
according toBloombergLast year, it was reported that George Soros, the Rockefeller family began to dabble in the cryptocurrency asset class. Soros' $26 billion Soros Fund Management is said to be planning to trade digital assets. Venrock, the venture capital arm of the Rockefeller family, decided to take a different approach, partnering with cryptocurrency investment group Coinfund to support cryptocurrency and blockchain business innovation, emphasizing a long-term strategy.
Mike Novogratz, CEO of Galaxy Investment Partners, said that more institutions will enter the crypto market in the first and second quarters of 2019. He also expects the crypto market to be in 2019secondary title。
The crypto market is no longer a playground
Previously, investors were hesitant to enter the crypto market due to high volatility and lack of regulation. But this situation is changing, and the big players are starting to make the market.
Stefan Neagu, co-founder of digital identity management system Persona, said bitcoin has attracted big players because institutional investors view bitcoin as an investment vehicle. This will benefit the crypto market because it is no longer a playground, but a sandbox for a small group of people who are moving money from the real economy into the crypto market.
In 2018, withThe boom of OTC market makersAnnounceAnnounce, which has opened an over-the-counter trading platform for institutional investors, Coinbase and Hodl Hodl launched OTC trading platforms last November.
According to Cryptocurrency Research GroupDiarInstitutional cryptocurrency trading volumes on traditional exchanges have been dwindling as bitcoin has been included in major institutional portfolios this year, being replaced by over-the-counter trading, according to the report.
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Liquidity Issues and Suspects of Manipulation
Another problem with the cryptocurrency market is low liquidity and suspicions of manipulation. The continued entry of institutional investors has the potential to help stabilize the current market and distort prices.
Neagu said he was skeptical that increased interest (from growing institutional investors) would lead to liquidity issues. He said he could not see any difference between the encryption market and the stock market. As for distorting prices, I don't think they will see any big market moves. He also said to rememberMt. Gox secondary title
Hong Kong’s Virtual Asset Regulations Favor Institutional Investors
Hong Kong Securities and Futures Commission (SFC)New virtual asset regulations have been introduced to limit crypto trading to institutional investors. Funds that require more than 10% of their asset size (AUM) to be virtual assets can only be sold to professional investors. Any fund and brokerage that invests in virtual assets must register with the China Securities Regulatory Commission. This means that only qualified institutional investors can invest in virtual asset portfolios.
Registered in SingaporeNEO Global Capital (NGC)Crypto regulation in East Asia is still fragmented, Roger Lim explained. However, further regulation will drive governance and mainstream adoption of cryptocurrencies.
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Crypto Custody Issues Must Be Solved
according to
according toBank of New York Mellonan articlean articleThe introduction of escrow will also free up large sums of money, writes.
Coinbase Has received approval from New York regulators to set up a cryptocurrency custody company to provide "cold storage" services for encrypted assets. Previously, the company's CEO Brian Armstrong estimated that there are currently $10 billion of institutional funds waiting to invest in digital currencies on the sidelines, and the primary issue that makes participants hesitate is the lack of safe custody services for encrypted assets.
This article is compiled from: Bitcoin.com,How Institutional Investors Are Changing the Cryptocurrency Market
