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The Impact Of Institutional Investors On The Market

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Published 5 years ago on November 09, 2018
By Robert Johnson
The Impact Of Institutional Investors On The Market
Institutional investors have come into the crypto space and with that in mind, large buyers such as endowments and hedge funds have been consistently purchasing over $100,000,000 worth of cryptocurrency through private transactions. Now, miners have started to schedule over the counter coin sales. Some have even set up their own liquidity desks and operations to accommodate the estimated $250 million to $30 billion in trades alone. Before this, big investors have steered clear from the crypto investing space because of the lack of stability for the bigger currencies. With prices of Bitcoin and Ethereum have reached a certain balance in this, more and more traditional financial institutions have started diversifying their portfolios with crypto assets. For individual investors, this active interest from big players presents a range of new opportunities as well. As Forbes mentioned, considering the current demand, large investment companies are saying close to the launch of dedicated crypto-investment products for much longer. The Goldman Sachs Group has become the very first bank to offer a Bitcoin trading product to its customers. At the start of this month, the company began to bring on a few customers to test their crypto trading desks which will allow trading Bitcoin non-deliverable forward contracts. The owner of the New York Stock Exchange, Intercontinental Exchange has planned the launch of their Bitcoin futures for later next month. The contracts will be backed by Bitcoin reserves held in ICE’s virtual asset ‘warehouse’. This means that Bitcoins will change hands once the contract expires. All futures contract will also be validated through ICE Clear US. CEO of the G8C token-issuing GanaEight Coin Ltd, a Ganapati Group company, Hayato Terai has said:
“Legislative changes regarding financial products are bringing in more transparency and legitimacy to the crypto-trading space. The ICO space will soon undergo similar changes as well. With better regulations and security mechanisms such as tokenized securities and stablecoins already being introduced, we should expect more interest and participation from institutional investors.”
Earlier in the year, Goldman Sach’s Principal Strategic Investments Group invested in BitGoo’s product along with Galaxy Digital Ventures LLC. The product is a new generation custodian purpose built wallet for storing digital assets, designed for specifically for institutional. What are your thoughts? Let us know what you think down below in the comments!
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Robert Johnson

Robert first came across Bitcoin in 2016 during a meetup in Belgium, and has been hooked ever since. With a background in Economics, you can find Robert frequently looking at the Twitter feed of the SEC for any regulatory updates relating to Bitcoin and Crypto in general.

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