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Hold Your Horses: Institutional Investment Probably Isn’t Being Pushed By the BTC Halving

Hold Your Horses: Institutional Investment Probably Isn’t Being Pushed By the BTC Halving
  • The former partner and CIO Goldman Sachs & Spartan Capital (respectively) recently took part in an interview with Jason Choi in a recent podcast.
  • Kevin Koh spoke on the potential for more institutional investors getting involved in the crypto world over the course of this year.

The former partner and CIO Goldman Sachs & Spartan Capital (respectively) recently took part in an interview with Jason Choi in a recent podcast. Whilst taking part in the interview, Kevin Koh spoke on the potential for more institutional investors getting involved in the crypto world over the course of this year. This is especially an interesting topic due to the upcoming Bitcoin halving set to take place in May 2020.

There are many people in the community that believe this upcoming halving will see the price of the currency surge, as well as more institutions getting on board with the digital space. Koh went on to say that if the crypto community isn’t able to agree on whether the bitcoin halving is pricing or not, it is extremely unlikely that big-time institutions will be able to see this have a big impact.

He said:

“That’s not to say that you wouldn’t find an odd CIO who has researched the asset class very closely and who has a strong view and wants to deploy. but I’d say for the average institutional investor, that’s probably not what’s driving their decision to invest in crypto.”

He went on to add that there are many different kinds of institutions. They typically have a strong governance process in place that require board approvals before making investments in new high-risk asset classes. He went on to say “They need to do extensive due diligence before they can make such investments.”

Following this, Koh said that these processes are likely to be the biggest spearheads of the timing of investments rather than the halving specifically. He went on to add, making comparisons to the recent Bitwise survey of 415 advisors in the United States who collectively manage more than $24 trillion in assets looking at the survey only 6% of advisors invest client funds into cryptocurrency is such as bitcoin.

“The other 94% largely still plan to avoid investing in crypto in 2020, and roughly 55% of them will definitely not invest in crypto this year.”

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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