Why Are Institutional Investors Getting Into Crypto?

The past two years were a wild rollercoaster ride for cryptocurrencies and especially Bitcoin with the price fluctuating constantly and shedding more than 65% of the highest ever price of $20.000.

Although there are experts that believe that the market is in a phase of correction, some governments around the world are still against cryptocurrencies and are fairly skeptic. However, many industries and companies like this trend and are happily joining the crypto bandwagon. Institutional investors are one of the most interested in crypto this year, and here is why.

Coinbase said that they are really thinking about adding new cryptos to their custodial services. This will allow institutional investors to store their cryptocurrencies at the highest level of safety. Goldman Sachs is also offering custody services that will likely help to jump over the barrier of lack of trusted custodianship. What is also very interesting, Ledger (hardware Wallet Company) announced that they support 8 new cryptocurrencies.

The US SEC is looking into 9 ETFs in the next two months. SEC stated that there is a chance of approving crypto derivatives in the near future. In Asia, Huobi exchange announced that they are working on their own ETF. Another important thing to pay attention to is the past performance of the cryptocurrencies. This helps investors check how their favorite cryptocurrencies performed and compare numbers and statistics.

Last, countries around the world are really pushing for a regulatory framework for cryptocurrencies and ICOs. Japan is currently among the first countries where bitcoin is recognized as a legal tender and in Switzerland, the Swiss Financial Market Supervisory Authority made clear guidelines for conducting ICOs. Thailand is also one of the countries that launched a regulatory framework and the Philippines also joined in.