Growing number of institutionnal investors - page 3.

LeGaulois

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Quote from: webtricks on June 23, 2020, 10:53:15 AM

And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

This money is solely a market money, it won't go for the development of something new or innovative. If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding. I agree that ICOs turn out to be epic fail as the time progressed but still money was flowing for the development of something new, something innovative in crypto domain. And even in the failure, we got some serious break-through in crypto industry. But now this money don't actually gonna give fundamental benefit to crypto industry rather it would disturb (will make more volatile) the crypto market due to excessive leverage play by the big investors.

Well, that's the same as the 2/3 of us actually using cryptocurrencies, they're not here for the tech or the development or whatever. They're also here only for speculating and take their profits.
What's the difference in terms of motivation? When it's institutional investors it's a problem but when it's random individual it's not anymore a problem.

Volatility is also what attracts people to gamble their money in cryptocurrencies, let's be honest. They all expect a pump and dump movement to make cash. If Bitcoin's price was so stable people wouldn't come.

webtricks

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And should this be seen as a good signal for cryptocurrencies? I doubt that. When we say institutional money is flowing into crypto domain, we first have to ascertain where this money is actually pouring into. After reading the article, it turns out that the institutional investors are investing in cryptocurrencies by the means of spot or derivatives trades for the sole purpose of making profits or balancing out their portfolio.

This money is solely a market money, it won't go for the development of something new or innovative. If we talk about a year or two prior, such institutional money was flowing into ICOs or crypto crowdfunding. I agree that ICOs turn out to be epic fail as the time progressed but still money was flowing for the development of something new, something innovative in crypto domain. And even in the failure, we got some serious break-through in crypto industry. But now this money don't actually gonna give fundamental benefit to crypto industry rather it would disturb (will make more volatile) the crypto market due to excessive leverage play by the big investors.

Thasins61

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Does the report talk about digital or crypto assets? Because there are many reports that use the term digital assets to denote digital currencies.
I would not be surprised if I heard that many rich people have already started investing even a small portion of their wealth in digital assets, but that will not exceed 1% to 5% of the value of their assets.
When institutions and governments move, we will see more demand, and therefore we may find some people advancing more aggressively and investing about 30% or more of their wealth in these assets.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: mariah.sadio on June 16, 2020, 03:09:46 AM

In my opinion true institutionnal will never invest in btc. They will prefer 30 years bonds

You have any proof of the same? I am sure there are newer investors entering the market and even in institutional nature, there are more than one analyst there. Someone will have knowledge of crypto and gradually it will increase in number. So we might see a slow but steady increase in interest in bitcoin from institutional investors.

Point is that I have seen this topic come up back in 2018 and 2019, couple of thread maybe but yeah its an ongoing thing now. Considering the news and the analysis to be correct, we are getting a growing interest in crypto. However I have also seen news articles that promote buying of bonds, gold, ETFs and so on. So you cannot take a single analysis to be complete but rather you need to make sure that you keep bitcoin and you invest in the fiat markets as well. Not doing so is an illogical thing and pure stupidity. I am bullish on bitcoin but for a very long term only. Fiat will be there for the time being and you need to make sure you have its share.

bearexin

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The direction things are going now, we have already killed our dream of Bitcoin being adopted for transaction. It’s just to invest, make your money and leave. But anyway, cryptocurrency is really good and just like a survey that I saw earlier this year, a lot of people liked that cryptocurrency has a low correlation when you compare with other assets.

People has been showing interest for a long time and I can tell from people around me that they are interested in cryptocurrency, but the fear of investing in a volatile asset keeps them to stay away from doing so. But I keep trying to convince them by showing past incredible performances of bitcoins; hope they may adopt bitcoins before institutional funds start in-flowing. If institutions start their play then we need to wait for 4 more years to catch another perfect entry.

TheGreatPython

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It’s okay, though sometimes I worry about all these things a bit. I usually feel like we are forgetting the main purpose of crypto, or isn’t there anything wrong with the fact that we are all now seeing Bitcoin as just investment? I am not saying that I don’t like the fact that we can make money, I like that.

But, a lot of people these days are just focused on how much money they can make. And what annoys me is that once they make that money they all leave. Yep, I have seen a few of the so called early investors who became millionaires, most of them will tell you not to buy because things have changed. I don’t think there would be any difference between them and these institutional investors, once they make profit they will sell off. They are afraid to invest because they fear they will not make profit.

ololajulo

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Have read lots about the institutional investment in cryptocurrency especially in bitcoin, they even do so much to acquire most of the newly mined coins. To me they only help to create the scarcity while the price is still manipulated. It is difficult now to appreciate their investment with the current market state, it does not increase the volume trade as well and money seems not to be flowing in the space. Invariably this looks like a time buying proposal to the space, when the time is ripe the price will go up.

nancy

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The main question - how many money they are ready to invest. Right now not so much, i guess

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They are just going to keep on coming seeing that the rewards are obviously higher than the risks associated in the current time-frame. Investor confidence is also higher compared to the previous years since more and more of them already knew how the market works, or at least grasped the basic movements of the bitcoin market during their stay. With the way the stock market goes currently, it's not surprising that some institutional investors will look for alternatives, and cryptocurrencies fall on that line. It will be quite exciting to see some of the major players in the traditional markets to express that they are slowly buying and buying all this time since the weight of their pocket can seriously cause sharp market movements on the upside.

Rafael_Carrero

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Between the third quarter of 2019 and the first quarter of 2020, the amount invested in more than doubled — from $388.9 million to $818.5 million. If "smart money" on Wall Street is finally starting to pour money into crypto, this tendency should continue. Investors are loosing confidence in fiat money.

Twentyonepaylots

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Quote from: Lucius on June 17, 2020, 11:46:02 AM

Quote from: LeGaulois on June 15, 2020, 12:58:38 PM

- 91% of them would like in the next 5 years cryptos represent at least 0.5% of their portfolio.

If this is an accurate figure, then this would really be a very significant indicator of what will happen in the next 5 years with the cryptocurrency market. When we talk about big players who have trillions of dollars, then even 0.5% represents a significant amount that must undoubtedly have a significant impact on the price of Bitcoin. It would be really interesting to witness when it all starts, because the amounts of BTC are limited and may not be enough for everyone.

The growth is significant for the cryptocurrency in general, I hope this will continue year by year so we just sit and wait til that time comes. If we get enough boost, it would not take a long 5 years to make we could just make it in 2 to 3 years, after the pandemic I guess. The scarcity of the bitcoin will be the key for its success, early adopters don't need to compete in the market just the buy bitcoins.

Quote from: Lucius on June 17, 2020, 11:46:02 AM

Quote from: LeGaulois on June 15, 2020, 12:58:38 PM

What is stopping them?
- market manipulation
- lack of knowledge
- volatility

It seems to me that big investors are waiting for some green light in the form of global regulation of cryptocurrencies, because they probably still estimate that the risk of investing in such things is much higher than the possible profit. I do not mean only the volatility, but also the security of the entire crypto infrastructure.

Indeed. There are some hindrances especially in terms of legality of cryptocurrencies, just recently I've read that there are some upbringing of the banning of cryptocurrency in India. This might affect greatly the crypto scene, if this happens expect the crypto to slightly dive and remain on that range shortly.

Febo

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Quote from: roberthays on June 16, 2020, 03:24:02 PM

I can see this growing more and more. Once Bakkt becomes more popular it will only increase the amount of institutional investors and fuel more innovation too.

BAKKT will get very popular as soon price of Bitcoin get to $20000. I am sure that was main reason why was made. Those that learn more about Bitcoin acquired it other ways then bought on BAKKT. Once price reach $20000, there will be plenty of those having no ideas what Bitcoin is just wanted to have it.

baby_ghost

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Institutional investors: endowment funds, commercial banks, mutual funds, hedge funds, pension funds, and insurance companies. institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans.

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Quote from: LeGaulois on June 15, 2020, 12:58:38 PM

- 91% of them would like in the next 5 years cryptos represent at least 0.5% of their portfolio.

If this is an accurate figure, then this would really be a very significant indicator of what will happen in the next 5 years with the cryptocurrency market. When we talk about big players who have trillions of dollars, then even 0.5% represents a significant amount that must undoubtedly have a significant impact on the price of Bitcoin. It would be really interesting to witness when it all starts, because the amounts of BTC are limited and may not be enough for everyone.

Quote from: LeGaulois on June 15, 2020, 12:58:38 PM

What is stopping them?
- market manipulation
- lack of knowledge
- volatility

It seems to me that big investors are waiting for some green light in the form of global regulation of cryptocurrencies, because they probably still estimate that the risk of investing in such things is much higher than the possible profit. I do not mean only the volatility, but also the security of the entire crypto infrastructure.

Gozie51

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Quote from: Harlot on June 17, 2020, 05:49:02 AM

Quote from: LeGaulois on June 15, 2020, 12:58:38 PM

What is stopping them?
- market manipulation
- lack of knowledge
- volatility

we all have seen statements for conservative billionaires like Warren Buffet against Bitcoin and I think a lot of people in the financial industry is sharing the same sentiments as Warren Buffet.

Those statements have not even worked against bitcoin and cryptocurrency as we all see. Is just like the Chinese having much hate to bitcoin in 2017 but we saw an ATH that year.
So those statements can only make people who have been looking for a reason not to invest to justify themselves. Soon a new ATH will show in bitcoin and altcoins.

Harlot

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Quote from: LeGaulois on June 15, 2020, 12:58:38 PM

What is stopping them?
- market manipulation
- lack of knowledge
- volatility

Aren't this problems can easily solve by them? I mean they have the money to learn and manipulate the crypto market all they want just like what they have been known to be doing in the stock market for a long time now. These problems that you have stated are not really problems for them but if we think about what's really stopping them it's either them being a conservative or traditional investor or their clients are the ones against the idea on pooling their funds in the crypto market, we all have seen statements for conservative billionaires like Warren Buffet against Bitcoin and I think a lot of people in the financial industry is sharing the same sentiments as Warren Buffet.

LeGaulois

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Quote from: Naida_BR on June 16, 2020, 06:50:19 AM

From being interested than investing really it is a long way to go.
Institutional investors are growing but they are not really investing and if the time comes for that they do not invest a lot of money, they are afraid to take the high risk especially for the cryptocurrency assets.

I wouldn't say there is "a long way". Look, the survey says 27% of the US investors invested in cryptos, while it was 22% last year. It's a 5% increase in just 1 year (Keep in mind the survey was realized before the COVID-19 crisis).

How they aren't investing in? The survey says otherwise, more than a third have already done so, and almost half among Europeans. While they ignored the market less than 3 years ago. Roll Eyes

Not a lot of money? They expect to have at least 0.5% of their portfolio allocated in, while it may not seem like much to us, we're talking about hundreds of billion dollars. Usually, we dedicate a low percentage to the risky investments (due to diversity and risk balancing).
We often hear we shouldn't allocate more than 5% to risky investments (or something like that), 1% here, 1% there, etc...

If we consider Blackrock for example, they manage like 7,000 billion USD, if they invest just 1% it's 700 billion injected in the market.

roberthays

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I can see this growing more and more. Once Bakkt becomes more popular it will only increase the amount of institutional investors and fuel more innovation too.

Febo

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Quote from: joniboini on June 16, 2020, 03:00:49 AM

Quote from: Febo on June 15, 2020, 04:16:05 PM

The only logical next step to happen is that institutional investors get bigger share of Bitcoin. That will be the fuel for next bull market.

Or the average joe sees the news, believe those investors will buy more, start buying more, pumping the price while the big guy is waiting for a perfect entry to exit the market as usual.

Exit to where? There is nowhere to exit. Bitcoin is safe heaven. They are allready full of gold. What they will buy shares that are in huge bubble? Real estate that is in huge bubble also. They will keep fiat that will devalue soon. Bitcoin is exit.

Naida_BR

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From being interested than investing really it is a long way to go.
Institutional investors are growing but they are not really investing and if the time comes for that they do not invest a lot of money, they are afraid to take the high risk especially for the cryptocurrency assets.

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