Institutional investors entry to the crypto space

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Companies

Nasqad Inc.

BitGo

Coinbase

Fidelity Investments (FRM LLC)

  • Overall, institutional investors are positive about crypto assets.
  • The influx of institutional investors stalled by the unexpectedly harsh bear market that hit near the end of 2018.
  • Institutional investors are searching for crypto assets that meet their goals and fit into their portfolios while staying within their risk tolerance levels.
  • Knowledge of crypto assets ranges from novice to expert across the field.
  • Coinbase’s Christine Sandler explains that the main barriers for institutional investors are: regulation ambiguity and the lack of institutional products.
  • Other factors holding back the institutional investors are the lack of real use cases and the lack of a proper and secure infrastructure.
  • Institutional investors are still very much in tune with the traditional financial system and view crypto assets as an opportunity to diversify away from typical assets, but the confidence and ability to do so remains largely uncertain.
  • Regulators are working towards better regulations and security mechanisms for the crypto space, such as KYC and AML policies.
  • New products for institutional investors are appearing slowly, as for example, Nasdaq is moving ahead with a plan to list Bitcoin futures.
  • At the same time, the emergence of strong crypto asset custodians like Fidelity and Bitgo is strengthening the crypto ecosystem and giving investors incentives to participate in this market.
  • Investors believe that the markets where blockchain will have the most impact include: financial services, banking, identity and healthcare industries.

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