Wednesday, December 12, 2018
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What Benefits Will Institutional Investments bring to the Cryptoworld?

by David Drake Several events rocked the cryptocurrency market as we embarked on 2018. Market capitalization see-sawed losing more than 48% of its value on the first quarter of the year. From $612 billion, crypto market capitalization went down to $261 billion by the end of March while Bitcoin’s value went down by more than 50%. Japan, the United States and other countries went after crypto firms suspected of scamming investors after issuing warnings on the need to follow regulations, although not so clear yet. Thereafter Facebook banned crypto ads, Twitter and Google also announced similar bans. These events have caused many to ask whether this is a crypto dotcom bubble all over again. But some hard critics of the cryptocurrency industry are now changing tune and George Soros is one of them. After issuing a strong statement that the crypto market was a bubble in n January this year, ... Read More »

Market Volatility: Why Participation of Institutional Investors is Critical for the Crypto Market

by David Drake Over the last few weeks, institutional investors have turned their attention to the cryptocurrency market. In the UK, Barclays PLC announced it is gauging the market to determine whether it will set up a digital trading desk to assist institutional investors purchase digital assets. This is perhaps the most notable step that a financial institution has taken that points to an increasing flow of institutional capital in the cryptocurrency industry. In the US, billionaire George Soros made headlines when he gave his family office permission to invest in digital assets. Another notable investor, Venrock Capital, a venture capital firm linked to the Rockefeller family, is working with CoinFund Investments to invest in cryptos. Investor Confidence This flow of institutional capital into the cryptocurrency space is significant because of the experience institutional investors bring to the market. Their presence in the cryptomarket is likely to boost investor confidence ... Read More »

Will the Cryptomarket Continue to Attract Institutional Investments?

by David Drake Over the past few days, we have seen institutional investors like family offices, venture capital and even royalty funds – enter the cryptocurrency market. George Soros officially issued an internal approval for his $26 billion fund, Soros Fund Management, to trade cryptocurrencies. But Soros isn’t the only one who has developed interest in the crypto market. Venrock, the Rockefeller family official venture capital arm has also joined forces with Brooklyn-based cryptocurrency investment group, CoinFund, to invest in cryptocurrency and other related projects. In Europe, the Crown Prince of Liechtenstein, His Majesty Alois Philipp Maria, made public his interest in buying Bitcoin and other cryptocurrencies as a family investment. Will this trend continue? Getting a Piece of the Cake From here on, we are likely to hear news that other institutional investors, including mutual funds, insurance companies, pension funds, endowments, hedge funds, investment banks, hedge fund investors, REITs ... Read More »

How Reduced Market Uncertainty is Boosting Institutional Capital in the Crypto Market

by David Drake Towards the end of 2017, the cryptocurrency market began experiencing a downward trend. This got worse in early 2018 as governments launched crackdowns with the aim of protecting investors. This and other factors caused the value of digital assets to drop by almost 50%. As we enter the second quarter of the year, things seem to be looking up. Entry of Big Money Spenders Already, we are witnessing growing interest in cryptocurrencies among big money spenders who are looking to tap into this new asset class. George Soros has already given his fund, the Soros Fund Management, the go-ahead to invest despite labeling the market a bubble back in January 2018. There’s also Venrock, the venture capital arm of the Rockefeller family. This firm has Bitcoin in its line of sight, while in Europe, the crown prince of Liechtenstein has stated his interest in using Bitcoins and ... Read More »

Why are Institutional Investors Suddenly Interested in Cryptos?

by David Drake The cryptocurrency market has gained popularity over the past few years to the extent that those who viewed it as a speculative bubble are already having second thoughts. As the cryptocurrency adoption continues to grow, institutional investors now have their eyes set on this revolutionary market. Recently, several institutional investors have taken concrete steps to invest in the cryptocurrency space despite the unprecedented drop in price and market cap experienced during the first quarter of 2018. Such investors include Venrock Capital Firm, associated with the Rockefeller family, and the Soros Fund Management, a family office linked to billionaire George Soros. Regulatory Environment While for years the cryptocurrency market has remained unregulated, countries have started to address the loopholes, such as illegal activities and scamming schemes that defraud investors individually. Steps that some governments have taken to streamline the crypto market seem to have increased the confidence of ... Read More »

Can Institutional Investors Increase Transaction Volumes in the Crypto Market?

by David Drake After losing more than 50% of its value this year, the cryptocurrency market is likely to experience steady growth in terms of trading volumes and reduced volatility in upcoming months. This, analysts believe, will happen because governments are now taking steps to establish a regulatory framework for cryptocurrencies. At the beginning of the year, countries such as South Korea reigned in on the cryptocurrency market, banning anonymous trading and requiring traders to link their cryptocurrency accounts with their bank accounts. In the US, the SEC appeared to treat crypto assets as securities when it subpoenaed more than 80 companies that had issued initial coin offerings. Within the tech sectors, tech giants like Google, Twitter, LinkedIn and Facebook, seemed to push governments towards developing regulation for the industry when they announced they were banning cryptocurrency ads, citing the need to protect investors. Industry boost While regulation of cryptocurrencies ... Read More »

Will the Flow of Institutional Funds Boost the Cryptomarket?

by David Drake Institutional investors such as pension funds, mutual funds, endowments, and sovereign wealth funds, are slowly taking interest in cryptocurrencies. These investors have kept their eyes on this new asset class for the past three years. Despite the recent media controversies surrounding ads ban by tech firms and government crackdowns on cryptos, their interests seem to remain undeterred. These and other factors have caused a drop in crypto market performance. Bitcoin took a hard hit at the start of 2018, dropping in value by over 50%, but with institutional investors making up approximately 45 percent of the entire global asset class, even small contributions into the market can make an enormous difference for the crypto market. Leading the pack After terming the crypto market ‘a bubble’ in January, George Soros seems to be leading other investments in putting money in the crypto market. The billionaire investor has now ... Read More »

What is Really Driving Institutional Capital to the Crypto Market?

by David Drake For years now, many conventional investors, such as endowment funds, family offices, and pension funds, have avoided investing in the cryptocurrency industry. This is due to its high volatility, a track record that is limited and lack of clear regulations to guide industry operations. However, this is slowly changing. Earlier this month, Bloomberg reported that George Soros, the billionaire hedge fund guru, is considering crypto asset investments. Speculative Investments According to media reports, Soros has already authorized his family office, the Soros Fund Management, to trade in cryptos. Though the Macro Investing Head at the family office, Adam Fisher, is said to have gotten the approval, he has not made any bets on cryptos as of yet, according to Bloomberg. Besides Soros, another ultra-wealthy family, the Rockefeller, is also eyeing the cryptocurrency market. Through its Venrock venture capital firm, the Rockefeller family is already collaborating with CoinFund investments to ... Read More »

Two Key Factors that are Influencing Institutional Investment in Cryptos

by David Drake In the recent past, institutional investors have expressed interest in the cryptocurrency market. In the US, Venrock, the venture capital arm of the Rockefeller family, has joined forces with Coinfund to invest in cryptocurrencies and related projects. Further, just months after he referred to cryptocurrencies as a bubble, George Soros has given his $26 billion family office, Soros Fund Management the greenlight to trade in cryptocurrencies. In Europe, the crown prince of Liechtenstein revealed that his family is considering investing in cryptocurrencies. This institutional investor involvement is good for the cryptomarket because the entry of huge funds will increase trading volumes in the market and boost the its value. But what factors are driving this burgeoning institutional investor interest in cryptos? Price Correction According to coinmarketcap, the cryptocurrency market capitalization grew by 33% in 2017. However, in 2018, the market has experienced a downward trend. According to Kyle ... Read More »

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