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Crypto Markets

Institutional Investors Might Trigger A Bullish Race In The Cryptocurrencies Market

One hypothesis that hints that the crypto market is up for a big uptrend, even bigger than the surge recorded during the last year, arises from the growing cryptocurrency demand. Powered by market’s popularity, connoisseurs forecast that more and more institutional investors will seek to take a part in the action and grab a big piece of this pie.

As increasingly more cryptocurrencies are emerging on the mainstream markets and forming alliances with major investors including PwC, Goldman Sachs, and Santander, among others.

Big institutional investors can’t stay far for too long and this will boost the cryptocurrencies market

The best part regarding these institutional investors is that these entities are not used to deal with low-profile investments. Thus, they will come to the cryptocurrencies market only to place large-scale investments, so helping the market grow in terms of volume of transactions and market cap.

On the other hand, when reviewing the cryptos’ partners, it might be possible to not observe the bigger picture. Therefore, any news regarding the partnerships between big companies and cryptos seem isolated events. However, on the overall, firms like Facebook, MoneyGram, Santander, or Walmart, all of which are already involved in the cryptocurrencies market, to some extent, might influence other companies of the same level to go with the stream and get involved in the cryptos.

And, once it will happen, there will be a competition going on between the institutional investors, which will benefit only the cryptocurrencies market, in the end.

Cryptocurrencies market seeks widespread adoption

In short, the more companies will invest in cryptos, the more the market will stabilize and grow. Basically, this would mean widespread adoption and money infusions of up to $10 billion might be experienced which, eventually, would lead to a significant boost of the cryptocurrencies market.

All these, however, are founded on simple hypothesis and a market that operates in an almost perfect setting but, above all, it could happen if the big institutional investors would see the importance and the bright future of the cryptocurrencies market as both digital currencies and blockchain technologies.

Categories
Crypto

Coinbase Prime Launched To Bring Institutional Investors Into The Cryptocurrencies Market

Just recently, Coinbase announced the launch of some of its new services, namely, Conibase Custody and Coinbase Prime, the latter being a new platform specially created to offer a great series of instruments destinated for institutional investors who want to join cryptocurrency trading. After the news has been released, many speculations emerged, some crypto enthusiasts voicing that this action will push the market faster toward a market cap of $1 trillion.

Trying to become the ultimate champion of the cryptocurrencies market, Coinbase considered attracting the attention of institutional investors which could bring big money to the market booting the cryptocurrency market capitalization.

In its most recent statement, the San Francisco-based cryptocurrency exchange operator released its Coinbase Prime which is, as they describe it, “a new platform specifically designed to provide a set of tools and services that institutional investors rely on when trading with cryptocurrency.”

Coinbase Prime aims to attract institutional investors into the cryptocurrencies market

The goal of the program is to overcome the shortcomings in infrastructure that the institutions demand by providing “loan and margin financing products to qualified clients.”

“We are delighted to help institutions around the world participate in this emerging asset class,” stated the Coinbase team.

The main reason why institutional investors avoid trading on the cryptocurrencies market is the lack of some clear crypto regulations and the needed instrument for a secure and reliable trading.

The Coinbase platform will supply a decentralized liquidity reservoir for all Coinbase instruments. Over the year, it will “introduce new features such as low latency performance, local data center colocation services, institutional connectivity and access, and clearing and settlement services”.

Furthermore, financial institutions lack the right resources and instruments to be able to operate in the cryptocurrencies market. By supplying all the utilities and facilities to these institutional investors, Coinbase Prime will allow these investors to embark on an easy journey into the cryptocurrency universe.

The final outcome for the cryptocurrencies market, according to some crypto enthusiasts, will be the $1 trillion crypto market cap milestone.

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