Institutional Investors in crypto - the bull run waiting
Cryptocurrency has become a new asset class . Though it is in the nascent stage of development but this blockchain based technology has a great future. So there has a rise of new type of investors since a few year i.e crypto investors. Many had invested in several coins and got benefited but, the crypto sphere is still dominated by retail investors. On the other hand equity market is dominated and influenced by the Institutional Investors.
A recent report from Binance Research – the market analysis arm of the world’s most popular cryptocurrency exchange, Binance – explained that an estimated 7% of all cryptocurrencies are only owned by institutional investors. It signals that the crypto markets have a long way to go before they are flush with institutional capital.
If we compare institutional investors in both stock market and crypto market in the US then we conclude that stock market institutional investor poured thirteen times fund than the crypto institutional investors and worldwide this scope is bigger. crypto needs to go a long way to to attract institutions. So in the comming year there is a great future and a bright promise for this digital asset. There is still a significant amount of investment capital waiting to be poured on crypto.
Some institutional investors are also offering hedge fund , private equity, venture capital based on cryptocurrency.
As of now nearly $10 billion has been invested by institutional investors which is 14% market value of Bitcoin alone and if Altcoins are included in the assumption of their holding the ‘institutional proportion’ overall could be less than 7% for the cryptoasset market .
This is a big hope for comming crypto boom.
Thnaks and waiting for your comments....
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