Institutional Investment on Crypto Markets is Setting Pace for Growth

Entry of Financial institutions into the crypto space will set the pace for the transformation of digital currency adoption. In fact, this has been the highlight of 2019, with most institutions showing interest in the crypto industry.  The impact of financial institutions joining into hyped crypto space- is the ability to professionalize digital financial solutions. One Oliver Von Landsberg, a chief executive at BCB notes the fundamental growth the market has experienced this year and analyzed various comparisons from the annual bull runs experienced this year. 

 

In June, BCB brought 9 UK financial institutions for banking and Over the Counter trading  solutions into the crypto fold. As a result, the count increased to 32, among other institutions which came on board in the course of 2019. 

 

 

The industry is facing booming growth alongside the biggest levels of institutional growth as witnessed with BTC futures open Interest, trade volumes and the number of established banks that issue their own digital currency on private blockchains

Furthermore, the financial institutions are in support of a varied number of blockchain projects in the commodity trade finance and shipping industries. 

Meanwhile, the pace of institutional involvement in the crypto markets is proportionate on over reliance on regulated products and processes by institutional investors; as well as reliance on steady growth on the regulatory front by these organizations. In addition, infrastructure improvement is also a major concern that affects the institutional adoption. 

Push Towards Better Legislation

On the downside, is the slow pace by financial regulators while issuing licenses and guidance for firms seeking to invest in digital assets. This is especially common in the US and parts of the European Union. However, the crypto community expects this slow legislation to change in part due to Facebook’s announcement of a global currency; as well as the receding push-back from global regulators. The reflection of which has been seen in Bitcoin’s violent price swings in the past few weeks. As a result, mounting pressure on the debate amongst regulators on what is to be done. 

Facebook waging war against regulators with talks to amplify frameworks that will favor crypto; There is potential of adoption of frameworks that will work in favor of crypto markets. Furthermore, the advent of Libra will see billions of use around the globe use digital assets.


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