What does the institutionalization of crypto mean for retail investors?
Dmitry Tokarev, CEO at Copper and Jeff Hancock, Co-Founder and CEO at Coinpass Global, take a look at how greater
interest in crypto-assets from larger financial institutions is changing the market
Even with the world in lockdown, the crypto space is a hive of activity.
The last few weeks, in particular, have seen a flurry of institutional activity that includes Nasdaq confirming
plans to integrate with enterprise blockchain firm R3. Also, Grayscale, which manages more than $2.5 billion
in digital currencies, recently declared that it saw a record increase in new institutional capital inflows to its
digital currency investment products.
Most recently, venture capital firm, Andreessen Horowitz, announced that it had raised $515m for its second
fund focused on crypto networks and businesses. The timing of this capital raise has raised a few eyebrows.
What could be enticing institutions to infiltrate the crypto markets at a time when the global economy is entering a
period of contraction, which the International Monetary Fund (IMF) predicts will be the worst since the Great Depression?
Institutional interest is driven by innovation
The institutions’ ascendance in crypto has grown in parallel with innovation in the sector. The capital
potential the likes of family offices, asset managers, pension funds and university endowments can bring to the table is spurring fin-tech firms to
clean up their act.
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