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.
So, this isn’t a case of if, it’s a case of when, and which.
Which crypto, will bring the institutions in first?
We want to explore what Bitcoin, Ethereum and XRP could bring to the table in this instance. Of course, many altcoins could actually be the first to inspire a wave of this sort of investment, but if we went through them all, this article would turn into a novel. If you want to do further research within this, take a look at Stellar and VeChain for a start, they are making big movements within large corporations, so could be ones to watch.
The world’s favourite cryptocurrency. Bitcoin could pip it’s rivals to the post for two reasons. First of all, Bitcoin is the most notorious cryptocurrency, it’s popular and well know, therefore institutional investors may find it tempting to invest. Next up, Bitcoin has a proven track record of providing huge returns on the investment. These investors will only invest if they know they can make money. Technically put, by looking at Bitcoins history, institutional investors will see Bitcoin as a winner, it’s flown to $20,000.00 before and therefore, it has the capacity to do this again.
Ethereum, whilst it may not be the most fruitful investment in terms of returns, it’s a big network, one that is both very popular and is only growing. It’s likely that some institutions will access Ethereum as an investment, through investing in Ethereum based projects. Moreover, by market cap, Ethereum is the second most popular cryptocurrency, therefore this alone should be enough to inspire some investment.
XRP, whilst it has its difficulties, XRP is a contender for the investors. Unlike Bitcoin and Ethereum, XRP isn’t notoriously famous for producing huge returns, however XRP is cheap and has a use that will be seen as attractive to institutional investors. By investing in XRP, these investors will in turn find a way into accessing Ripple’s technologies, something that is equally valuable for a million and one different reasons.
We don’t know which crypto will pull the big guns in first. Honestly, there’s no way to tell. However, by exploring the current projects out there, we can at least work out what it is that the institutions want, in order to help us plan and ‘expect’ what could happen in the future as a result of large scale institutional investment.