Recent Signs of New Institutional Money in Crypto

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July 31, 2018 by
Photo: Even more new money pours into the crypto space.
Recent Signs of New Institutional Money in Crypto

Bitcoin and cryptocurrencies in general have been traditionally led by retail investors because, up until recently, there was a lack of regulatory clarity. However, with all the new regulations coming up across the globe, institutions are slowly pouring into the markets and they are choosing Bitcoin first due to its long-standing reputation and direct regulatory approach.

Here are some recent headlines that signify a new upcoming wave of institutional money.

Coinbase acquires $20 billion investment fund as a client

According to Business Insider, Coinbase has lured a $20 billion hedge fund onto its institutional platform “Coinbase Prime” that it released earlier this month. Coinbase Prime would allow institutional investors to borrow to trade, which can help magnify returns, or leverage a short position. In the future, it is possible that Coinbase’s broker business could help clients find the best venue to make a trade, even if that means sending it to a rival like Binance, Okex, or HybridBlock.

Grayscale capital acquired $250 million in new investments in 2018 – 56% from institutions

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. This equated to roughly $10 million in new investments every week, of which 56% comes from institutional investors.

More financial companies invest into the crypto space.

A tweet on the interest of institutions on the crypto space.

Billionaire, Marc Lasry, holds $17 million worth of cryptocurrencies

Last week, the founder of a $9.6 billion asset management firm, Avenue Capital Group, Marc Lasry announced on CNBC that 1% of his $1.7 billion net worth is comprised of cryptocurrencies. He predicts that bitcoin price could reach $40,000 within 3-5 years as more people begin to have access to Bitcoin.

$6 Trillion Investment Firm, BlackRock Inc., is Looking Into Bitcoin

On July 16, Blackrock CEO Larry Fink confirmed that the world’s largest ETF provider was interested in blockchain investment. The company has assembled a working group to look at blockchain technology and cryptocurrencies such as bitcoin. Some unconfirmed sources claim that the asset management firm is seeking to include Bitcoin futures in its client’s portfolio.

Japanese Banking Behemoth launches World’s First Bank-Backed Crypto Exchange

On July 17, VCTRADE, most notably backed by the Japanese banking behemoth SBI Holdings, has just launched to the public in Japan. The exchange has already started accepting account applications from Japanese users between the ages of 20 and 70. This is recognized as a significant step towards better banking and cryptocurrency relations–at least in Japan.

Steven Cohen, hedge fund manager worth $11.4 billion, has invested in cryptocurrency

According to Bloomberg, billionaire Steven Cohen recently invested in Autonomous Partners, a cryptocurrency hedge fund startup led by Ariana Simpson. Simpson said she is interested in investing in cryptocurrencies that serve as general purpose money, like Bitcoin and Ethereum, but is steering away from Ripple, claiming in an interview with Fortune:
“I have a lot of concerns about the level of centralization there, and I have regulatory concerns if what they have issued is a security.”

Bitcoin trading firms join forces to entice big institutional investors into cryptocurrency

TrueDigital Holdings LLC, a major cryptocurrency exchange, partnered with several crypto firms to build two new price indices for the two main cryptocurrencies, Bitcoin and Ether. The firms teaming up with trueDigital in this project include:

  • XBTO Group – One of the world’s largest and most diversified participants in the cryptocurrency markets, with offices in New York, New Jersey, and Paris Circle – a peer-to-peer payments technology company focused on fiat and cryptocurrencies.
  • Circle – A peer-to-peer payments technology company. On May 15, 2018, Circle raised ⦁ US$110 million in venture capital to create an Ethereum coin backed by USD.
  • DV Chain – a Chicago-based market maker providing over-the-counter (OTC) trading with large institutional buyers and sellers of crypto assets.
  • Hehmeyer Trading Group – Hehmeyer and its subsidiaries provide traders with infrastructure, financial backing, exchange memberships, compliance/operational support, and customer and client services.
  • Altonomy – a digital asset management firm, providing trading solutions for blockchain assets with offices in New York, Beijing and Singapore.

Related: Binance to Offer Crypto-Fiat Trading this Year
What You Should Know about Custodial vs Non-Custodial Exchanges

“B2B reporter – Content Manager – Contributor – Fintech – Blockchain – Cryptocurrency”

Simon Chou is a B2B reporter and content manager specializing in technology and finance. He has worked with many clients in the fintech and blockchain space. He holds investment positions in bitcoin and other large-cap cryptocurrencies, and has been reporting on cryptocurrency since 2017. Currently, Simon is the content manager for a major cryptocurrency exchange @HybridBlockHQ.

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