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Topic: Growing number of institutionnal investors - page 4. (Read 1123 times)

hero member
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1 - Zero or even negative interest rates.  As interest rates are too low, instutional investors are going more and more to stocks.

Correct. This can happen in the first place rather it might be the case in current scenario. Who wouldn't want to invest in such low time IF they have got money in their pockets. I'm pretty sure big guys will lure the market with their crude investment when stocks are going zeros. Economic crisis is first step where thoughtful investment can be done easily to avail profits in future.

No stock is gonna stay zero forever, no stock will stay steady for long time. So it's just about the time when everything resets and people go on earning profits. Loads of it.

So yes, institutional investors outbreak is real.  Cheesy
sr. member
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HEX: Longer pays better
This is a good sign for traders and holders like us. I feel that this market needs more people to not be strongly controlled from those who have a lot of money. This is actually a very interesting market and it is for people who are interested in high risk and high profit. That's why many people around the world increasingly want to participate in the crypto market. Another fun thing is that newbies who enter the market will be fomo mentally. Bitcoin halving just happened so they will buy bitcoins continuously and then we can sell bitcoin at a high price.  Wink
legendary
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- 75% of Americans and 82% of Europeans are interested in these assets

- 36% of them invested in cryptocurrencies, directly or via derivatives. (27% in The US and 45% in Europe. It 's clear EU is smarter than US, ok just joking, or not)

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

Refreshing counterpoint to Goldman Sachs' recent report, thanks for sharing! This agrees with my belief that institutions and high wealth investors have been quietly dipping their toes into the BTC market, if not outright accumulating. It's difficult to see the tide turning back at this point.

0.5% or 1% of multi-billion (or trillion) dollar funds is no trivial matter. That will seriously move the market as institutional adoption crosses the chasm from "early adopter" to "early majority." Just imagine when firms like Blackrock enter the market.
full member
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In my opinion true institutionnal will never invest in btc. They will prefer 30 years bonds
legendary
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Growing institutional interest on bitcoin is a good news. While this interest may fuel the next bull run but at the same time, it may also fuel mass adoption that may have lasting effect on bitcoin.

In many countries, bitcoin's reputation is not good as it has been involved in so many hacking incidents, ransomware attacks and illegal money laundering incidents. So common mass in their middle ages usually stays away from it. But that scenario may change if institutional investors pour money into bitcoin. That will bring back the trust factor in bitcoin market.

So in general, it's a good news for the entire community. Growing institutional interest won't make bitcoin centralized, rather infuse more liquidity into it!
legendary
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2 -  but Stock market is too volatile (as we saw in corona virus crisis). This is why they are taking a look at gold and silver, and the most obvious alternative to those is bitcoin.

As mentioned in the OP, I think those investors believe that bitcoin is way more volatile. Double-digit growth or loss is a common occurrence. But I think this is how the market works for now. The risk are higher but it's more rewarding. This is why their holding target is not that big yet, as throwing too much money might cause them a headache.

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.
legendary
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Growing number of institutionnal investors

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.
legendary
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Merit: 6089
bitcoindata.science
I believe institutional investors will continue to come, basically to two factors. Ofc this is just my opinion:


1 - Zero or even negative interest rates.  As interest rates are too low, instutional investors are going more and more to stocks.

2 -  but Stock market is too volatile (as we saw in corona virus crisis). This is why they are taking a look at gold and silver, and the most obvious alternative to those is bitcoin.
You can take a look at this picture just for an example.


source: http://www.worldgovernmentbonds.com/

I believe holding will be very rewarding in a not distant future.
copper member
Activity: 2940
Merit: 4101
Top Crypto Casino
Very high numbers, to be honest, it's surprised me. Imagine what the percentages will be in 5 years from now if the trend continues. A result from a survey from Fidelity shows more institutional investors think cryptocurrencies should be added to their investment portfolio.

Quote
“These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class,”

TLTR :

~800 EU & US participated in.

- 75% of Americans and 82% of Europeans are interested in these assets

- Stateless currencies: 25% of Europeans see this as a good aspect Grin

- 36% of them invested in cryptocurrencies, directly or via derivatives. (27% in The US and 45% in Europe. It 's clear EU is smarter than US, ok just joking, or not)

- 80% did it because it's/has
   * uncorrelated to other asset classes 36%
   * innovative technology 34%
   * the high potential 33%

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

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

Quote
“Investor concerns are largely focused on issues that will resolve themselves as the
market infrastructure evolves,”

https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/institutional-investor-study.pdf
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