The share of institutional investors in the crypto market will grow
Fidelity, one of the largest investment firms ($ 2.5 trillion in operating profit), recently surveyed 441 institutional investors regarding crypto assets. It turned out that 22% of them already own digital assets, and another 40% plan to introduce digital assets into their portfolio in the near future. In addition, 72 percent said they prefer derivatives.
Tom Jessop, head of digital assets at Fidelity, said:
“We are witnessing a process of aging of the market: if earlier digital assets were mainly crypto funds, now traditional investors such as family offices and endowment funds are entering the market. As institutional investors realize the potential of blockchain for the financial market, they are more likely to include digital assets in their portfolio, either directly or through intermediaries. “If you think about how important Bitcoin is today, with its immense adoption by those who can’t afford it when early adopters sell low; then look at Ethereum’s amazing success” he says – Tom Jussimka, CEO, Digital Asset Holdings Inc.
Exchanges adapt procedures to the needs of institutional clients
Many institutional investors who are ready to enter the crypto market will not be able to do this until the exchanges start operating in the legal field. Vlad Smirnov, founder of Velvet.Exchange, explains:
“Any income from the sale of cryptocurrencies, any profit from investing in private trading systems must be reflected in the client’s financial statements. For this, the exchange must be ready to provide all closing documents for transactions. Another important thing is checking the purity of the cryptocurrency. No institutional investor can afford to be caught buying bitcoins that have been involved in money laundering or supporting terrorism. We are already preparing to launch a service for checking the purity of coins. Other platforms are likely to catch up with us in 2020. “The first two years we may look into providing verification and reporting services on individual ICOs,” says Mr Raskoff [the head manager of VeriSign]. But there aren’t enough institutions yet willing if-and how to fully integrate information about companies whose investments could lead them down a black hole.”
The Blockchain Is A ‘Digital’ Book By Dmitry Dalkovsky Posted by SVD – Russian Bitcoin News Service In 2014 I was invited as an advisor to Estonia’s Ministerial Council
Halving will have a positive impact on the price of BTC
All crypto leaders in the bull camp are convinced that Bitcoin will easily hit the $ 20,000 mark in 2020. Naturally, for exchanges this will mean huge trading volumes and significant income from commissions. However, expert opinions differ on the details here.
Dan Morehead, CEO of Pantera Capital, reckons the price of BTC will reach $ 42,000 by the end of 2019:
“According to the model, we get $ 42,000 – I understand how it sounds, but (…) this value is on the trend line, and it is likely that by the end of the year we will get there. If you extrapolate to another year, you get a price of $ 122,000 per bitcoin. “
One of the objective factors that can increase the price is the so-called “Halving”: in May 2020, the miners’ reward for a block will be halved: from 12.5 to 6.25 BTC. Since it is the miners who bring new bitcoins to the market, the supply growth will be halved, therefore, most likely, the price will also increase. Furthermore all other methods – including speculation related to future upticks or drops have had no impact whatsoever as far back into 2015 when they were still growing exponentially because everyone believed any improvement would come during what was supposed doomsday at the very start with an eventual 1 trillion coins hardforking within 24 hours. Despite such massive expectations coming true after months of nothing tangible taking place before then, however many people now believe anything could happen over several weeks thanks mostly not only to cryptocurrency’s recent insane rally since September last month which saw record volume rising above 2 mBTC almost everywhere along its circuitous route across the country even though mining power usage fell dramatically while prices wen