A tidal wave of institutional money is possibly on its way to the crypto market
Monday, July 2 was a good day for the crypto market where crypto coins closed an average of 11.4%. The reason: Coinbase opened its 'custodial crypto service'. This service must primarily let institutional money invest in cryptocurrencies. After this adrenalin shot, the question now is what the future will bring now that there is a tidal wave of institutional money on the way to the crypto market.
- There is clearly a lot of money waiting to enter the crypto market, but a number of things still need to be solved.
3 solutions for a tsunami fresh crypto money
1. Regulation
To date, it is not so easy for institutional money to invest in crypto coins. Private investors have a big advantage here today. The implementation of regulations regarding trust, protection, transparency, ... is what institutional money currently prevents.
The market is currently waiting for rules from the SEC and FINRA because institutional money must be able to include crypto trading in their books.
2. Safety
- There are clear signs that institutional money is waiting, but they also need a secure structure. The infrastructure that is currently available is not 100% safe. Especially the safe storage of crypto coins is currently still a problem.
3. Liquidity
- Liquidity will also have to improve. Institutional money often buys in large amounts. Bitcoin and Ethereum are already reasonably liquid, but a large order can still turn the market upside down. When institutional money wants to buy or sell money, there must be enough counterparties.
Source: Bitcoin News
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