Institutional Investors Ready To Go Crypto?

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According to various reports, Bitcoin’s (BTC) massive price drop from its December all-time-high, reignited interest from institutional investors. It also affected the cryptocurrency markets in general.

According to Olga Feldmeier, the chief executive officer at Smart Valor, the strong break over $8000 may trigger “the ignition for the next bull phase, for which a lot of investors were waiting for a long time and will be happy to support now.”

Jeffrey Van de Leemput, Cryptocampus’ analyst stated that “serious money is now entering the market for the first time”. He continued: “a couple days ago I helped set up a 200k BTC transaction for Chinese buyers… Soros, etc., are coming in, we will now see the start of the real bubble.”

The lack of regulations

Co-founder of Hong-Kong-based cryptocurrency investment firm Orichal Partners, Adrian Lai, explained that the lack of regulation is what keeps institutional investors at bay.

“Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature,” he said. “If the regulatory stance gets clearer, large funds will be more assured and willing to commit significant capital.”

Volume growth

In the meantime, the Chicago Mercantile Exchange (CME) reported a 50% increase in the bitcoin futures contracts since December. The numbers where up to 2500 contracts in March, compared to 1600 in December last year. According to Tim McCourt, the managing director and global head of equality products and alternative investments, the trading volume “is steadily increasing each month.”

 

What do you think about institutional investors entering the cryptocurrency markets? Do you think this is a good thing? Let us know in the comments below!

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