Even in the usually risk-averse institutional finance community, the potential benefits and profits to be made in cryptocurrencies are becoming impossible to ignore. As their popularity continues to multiply at an astonishing rate, hedge funds and other pillars of the investing economy are slowly beginning to stop watching and start interacting. With a global institutional pool of over $ 130 trillion under management, there is potential in this volume to have tremendous impact on the burgeoning crypto asset class, valued now at just $ 300 billion.
Voyager, the cryptocurrency trading platform created by Uber’s first CTO and a former E*Trade executive, has launched a new brokerage division designed specifically for institutional investors. Dubbed Voyager Institutional, the brokerage aims to deliver a “best-in-class crypto trading solution” to large firms seeking to trade cryptocurrencies, a group that among others includes hedge funds, buy-side
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Bain Capital, a global alternative investment firm based in Boston, recently led a $ 15 million Series B for Seed CX, a startup cryptocurrency exchange that offers institutional trading and settlement for both spot market and CFTC-regulated derivatives. According to the official announcement, Seed CX will use the new capital to expand its physical trading infrastructure, grow […]
Citigroup (C), a major American multinational investment bank and financial services corporation, is reportedly developing a cryptocurrency investment product that would fall within current regulatory frameworks as a security. According to a report by Business Insider that cites individuals familiar with the matter, Citigroup is creating what it’s calling a digital asset receipt (DAR), an investment […]
Investors may now have a new way of purchasing cryptocurrencies without actually having to own them. Manhattan, New York-based banking giant Citigroup has reportedly developed a product which could reduce the risk hedge funds and asset management firms are exposed to when they invest in cryptocurrencies. According to the Business Insider, the instrument which was … Continued
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Institutional investment, high level investment from corporations and organisations that have a lot of money to spend. The benefit of this? Huge sums of money flooding into the markets. The draw back? None that we can think of just yet.
We know that this form of investment is the future for cryptocurrency. Institutional investment is the factor that is going to push the markets up, in terms of value and popularity. Generally, it is assumed that institutional investment will make cryptocurrency investment normal and thus, will help crypto to become the chosen investment platform for many investors, worldwide.
Professional services firm Deloitte are alleged to have completed a new research project into blockchain investment from their clients within the Technology and Media industries. The bottom line of the research is that these institutions are ready to invest in blockchain technologies, a readiness that could in turn inspire major institutional investment into cryptocurrency and blockchain projects such as Bitcoin.
This research comes as a part of a bigger push from Deloitte, into exploring how their clients can benefit from investment in the cryptosphere.
CoinMarketCap is pleased to be partnering with @TradeVela to bring our trusted cryptocurrency data to institutional clients! We will be providing the crypto data in their SuperFeed. Read our press release here at: https://t.co/IWbEw4jEy8
— CoinMarketCap (@CoinMarketCap) August 22, 2018
Coinmarketcap.com (CMC) is one of the industries best pals for when it comes to market and trend data. CMC exists on an easy to use website and mobile app that makes crypto data research as easy as it can be.
August marked the launch of Bakkt, a new blockchain and cryptocurrency project that nurtures involvement from mainstream companies such as Microsoft and Starbucks. The essence of Bakkt is that it could inspire a great deal of institutional investment and could make things like Bitcoin ETF applications far more likely to be improved. On a market level, Bakkt isn’t going to change things straight away, but in terms of institutional mainstream adoption Bakkt really does have the opportunity to bring Bitcoin to the fore, through their plans to offer an institutional grade cryptocurrency exchange.
Institutional-grade cryptocurrency prime dealer SFOX has raised nearly $ 23 million to fund the development of full-featured asset management platform for large-scale cryptocurrency investors. Announced on Thursday, SFOX’s $ 22.7 million Series A funding round was led by Tribe Capital and Social Capital, and it also included investments from Y Combinator, Khosla Ventures, Blockchain Capital, and Airbnb
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A cryptocurrency dealer project by the name of SFOX, backed by Nathan Blecharczyk, a co-founder of Airbnb has finished an initial round of funding that has raised around $ 22.7 million. SFOX is a project designed to provide trading services to institutional investors, making the entire process seem a little friendlier and more fruitful for large institutions that wish to invest in cryptocurrencies.
According to Coindesk:
“Founded in 2014, SFOX operates as a trading hub for institutional investors, high-net-worth individuals and family offices.
The slow trickle of traditional investment into the crypto market may turn into a flood if a new platform launched by blockchain services provider AxiomLevel Technologies makes its desired impact.
AxiomLevel’s investor onboarding platform serves as a finance industry solution that caters toward institutional players with investor registration, verification and management. It contains a comprehensive know your customer (KYC) module, anti-money laundering (AML) compliance modules, and accredited investor verification, as well as a global whitelisting solution for digital wallets.
In this week’s daily editions of Bitcoin in Brief, we reported about Twitter blocking ETH scambots mimicking Elon Musk, a US presidential candidate who accepts crypto donations, the expected arrival of a ‘herd of institutional investors’ and much more. The most commented-on article during the week covered the latest development of the ongoing legal battle in the Ross Ulbricht case.
A Hong Kong-based investment firm is planning to launch a new crypto-custody service to address the growing interest from institutional clients, and we’ve covered the story in today’s Bitcoin in Brief. Also in The Daily, billionaire Mike Novogratz expects an influx of institutional investors into the crypto space; a new survey claims 30 percent of Brazilians want to invest in cryptocurrency; and an Australian startup shows what to do with excess tokens if the sale did not meet its target; Samsung stores in the Baltic states don’t accept crypto after all, Coppay explains why.
Demand for secure cryptocurrency storage services is increasing. Meanwhile, investment managers and exchanges are creating services to meet the demand. Will this, in turn, encourage more high-net-worth and institutional investment in cryptocurrencies?
Traditional and high-value investors may still be wary of cryptocurrency exchanges, especially considering the frequency of major hacks. Such investors often feel more comfortable with the safe custody of their assets provided by banks and financial institutions.
Institutional investors are also likely to seek out over-the-counter (OTC) services for a more conventional style investment. Because of this, financial institutions new and old are creating OTC desks. Since OTC cryptocurrency transactions are usually of a higher value, demand for digital asset storage is boosted.
In its recent Digital Asset Investment Report, Grayscale Investments LLC, an investment company that specializes in cryptocurrency funds, revealed that it has raised $ 250 million through new asset investments in this year alone. The investments come despite a slump in the cryptocurrency market’s prices, which has seen bitcoin’s price decrease by nearly 50 percent during the same period.
The report came two days before a Bloomberg interview in which Larry Fink, the CEO of BlackRock — one of the largest asset managers in the world — said institutional investors were not interested in cryptocurrency.
The cryptocurrency world currently finds itself in a rather awkward state. There are various developments taking place which seemingly hint at the next stage of cryptocurrency adoption. According to Torque Ventures, institutional investors are on the verge of embracing this industry in a major way.
The Institutional Investor Conundrum
There have been rumors regarding the involvement of institutional investors in cryptocurrency for quite some time now. If these investors were to embrace cryptocurrency, the industry would be exposed to a growing amount of fresh capital. It has all the markings of a future bull run, even though getting these investors interested is still a very big challenge.
Through much of 2018, those in the cryptocurrency space have heard the same reassuring statements over and over — namely, ones claiming a flood of institutional investors is about to enter the market. We are now in Q3, and many are asking: where are they?
‘There’s Only Downside Risk in Cryptocurrency’
Various financial experts have weighed in on the apparent lack of institutional investment in the cryptocurrency market to Pensions & Investments — providing no shortage of reasons why big money isn’t in yet.
Institutional money is coming. At least that’s been the refrain from desperate cryptocurrency traders for the past six months, praying for an influx of new fiat to shore up prices and float their alt bags. But is it really the case that institutional investors are waiting on the sidelines for the right framework to buy in? At Blockchain Expo in Amsterdam last week, news.bitcoin.com spoke to two exchange leaders who are confident that it’s a question of when, not if, institutional investors pile in.
While everyone currently in the cryptocurrency space eagerly awaits the supposedly inevitable flood of institutional money, questions have been asked as to where said funds will go. Element Group’s Thejas Nalval claims Bitcoin is “number one on that list.”
The cryptocurrency market is currently supersaturated with failed and soon-to-be-failed projects. Nevertheless, the cream rises to the top and there are currently numerous contenders for the top spots. So where will institutional investors put their funds, if and when they decide to enter the market?