Institutions Will Buy Every Bitcoin (BTC) Dip
The long awaited and dramatic arrival of institutional investors onto the Bitcoin scene (BTC) now seems to be ramping up. This is what a new survey commissioned by the insurance company Evertas suggests. A group of 50 institutional investors who collectively manage more than $78 billion in assets in the United States and the United Kingdom were interviewed for the research. The findings: the majority of institutional investors plan to significantly increase their holdings in cryptocurrencies. The prospect of a bearish move in bitcoin does not seem to dampen their desire to acquire more assets.
The reasons for the change of course made by institutional investors
There are three main reasons for the institutional desire to invest more in Bitcoin and cryptocurrencies. The first is that investors are confident that the regulation of the sector will improve and become clearer in the future. The second reason given is the search for better liquidity, which they believe would be more readily available in this growing market. Finally, institutions appreciate the ability of this market to offer them a wider range of investment vehicles. However, there are many reasons why a mass influx of institutions could take a little while longer.
This is what J. Gdanski, CEO and founder of Evertas, explained the investigation commissioned by his company: “Our research shows that institutional investors are enthusiastic about increasing their exposure to cryptocurrencies and crypto assets in general, but there are clearly many issues regarding the infrastructure that supports these markets that still concerns them. These clearly need to be addressed if the full potential of investment from institutional investors in crypto assets is to be realised.“ The most cited problems include the lack of insurance for digital assets and the poor quality of procedures in the space.
A willingness to invest despite the volatility of bitcoin
The news of the price of bitcoin in this year has been dominated by the bullish cycle kicked off by the halving. If you have a look at the Bakkt platform, you can see the excitement of institutional players. The exchange volume of Bitcoin futures contracts reached a new record recently, with more than 200 million dollars of contracts exchanged. These figures show that institutions continue to accumulate BTC regardless of the value of the asset.
As the regulatory framework around cryptocurrencies is growing in many countries, the interest of institutional investors is expected to grow. Their entry into this market would also be welcome for the adoption of cryptocurrencies as the majority of participants in the Evertas survey think. Many players are positioning themselves in advance and want to enter the world of cryptocurrencies and Bitcoin. This is also the case for banks.
100% pure millennial, I stumbled across the cauldron of crypto and am now involved 24/7. My favourite quotes come from Sun Tzu’s ‘Art of War’ – “In the midst of chaos, there is also opportunity.”