Published
5 years ago on
October 30, 2018
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The Daily 2 - (Episode 5) The Truth About Institutional Investment
Introducing The Daily 2, the all new video series by proclaimed crypto evangelist, Brian Wilson.Find out more about Brian Wilson for yourself, here.Don’t miss a thing, be sure to subscribe to The Crypto Daily Official YouTube channel which can be found here. On today’s episode we will talk about institutional investors, what institutional investment is and means for the crypto world and how the recent moves of giants in finance aim to shape the outcomes of crypto currencies with a way forward to mass adoption.If you’ve been reading into cryptocurrencies and trying to figure out where things are headed, you have no doubt heard about institutional money coming into the space.So, what is an institutional investor? Well, those are the big guys. Hedge funds, investment funds, mutual funds, pension funds, money managers, investment banks, commercial trusts, etc. To put things into perspective, institutional investors account for half of all the volume on the New York stock exchange. Half.Why is that significant and what does it mean for crypto?Well, earlier last week, Fidelity, who, as of October 2018 is the world’s 4th largest asset manager… with $7.2 trillion dollars in assets under management, has launched what they call Fidelity Digital Assets. So, Fidelity is now providing crypto custodian solutions for institutional and accredited investors.So, what does that really mean? It means it provides a legal, legitimate, trusted entity to 27 million customers and 23,000 businesses, which are institutional investors, and provides the necessary path for them to invest in the cryptocurrency market with appropriate institutional products. Many believe this is the way forward for mass adoption and that it is only the beginning of huge investments into bitcoin and other digital currencies. Take billionaire Mike Novogratz, for instance. He is a former partner at Goldman Sachs, intimately understands the markets, joined fortress investments and took it public in 2007. He has since become a billionaire, member of the federal reserve bank of New York’s investment advisory committee, and left fortress to start his own crypto investment firm called, galaxy investment partners, where he sits on the throne as CEO.If you haven’t heard of Mike Novogratz, I highly recommend you google him. He is one of the well-known billionaires who champions absolute certainty of the rise and use of crypto currencies.I bring that up because not even 1 week after fidelity launched its new assent management services, Mike Novogratz and his crypto investment fund became their very first custodian client, with $350 million dollars in assets.One of the biggest barriers into crypto by institutional investment has been the lack of custodial services. Fidelity just changed the game in that regard.In an official press release, Fidelity’s CEO, Abigail Johnson, said:“Our goal is to make digitally-native assets, such as Bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”It has been reported that Blackrock, known as the biggest asset manager in the world, even ahead of Fidelity, has launched their own research team into crypto and most recently has been said to have a collaboration with Coinbase on a new Bitcoin ETF.You just can’t read into these facts and take away anything other than 2019 and beyond is going to be very interesting for cryptocurrencies. Now the question remains, in what way? There are many that believe this just opens the door to massive manipulation. What do you think?Now I’m not a financial advisor and this is not financial advice, but now may be a good time buy and hold some cryptocurrencies. Check out cryptodaily.co.uk to learn more about your options.Well, that’s my time. Please comment below and let me know what you think about institutional money flowing into crypto and what effects that might have.
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