Increasing Institutional Investment Spurs Bitcoin Growth
Much like what has been predicted by crypto analysts over the past two years, the increasing interest from institutional money — in terms of investment — has been a primary driver for the year’s crypto rally and will continue to drive Bitcoin growth in years to come. This is the observation from financial services group BCB.
BCB CEO Oliver von Landsberg-Sadie said that his firm’s specialization in digital assets allowed them to make good comparisons of the various Bitcoin crypto bull runs, with the current one. He says that this current bull movement is very different from previous ones because of “the speed of professionalization taking place in the markets”. He explained:
“The 2013 bubble was driven by technocrats and dark web trawlers and the 2017 rally was led by the whims of speculative retail traders, 2019’s growth belongs to financial institutions who are diversifying stale portfolios and finally have the professional machinery to do so.”
It was reported that in June in the United Kingdom alone, BCB has brought in nine financial institutions for banking and over-the-counter (OTC) trading, bringing the total to 32. Landsberg-Sadie adds that many of these had come during 2019, saying: “This is a fundamental shift in client profile compared to last year which was dominated by crypto projects looking for liquidity.”
These institutions are now also beginning to find common ground with blockchain projects dealing with shipping and commodity trade finance. New York-based Perkins Coie’s Blockchain Technology & Digital Currency group believes this means even more institutional shifts. According to partner Kari S Larsen:
“Exchanges are changing their focus from retail traders to institutional traders, providing such customers better ability to customize the front end of their trading platforms and providing APIs that better suit what institutional traders are used to.”
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