The latest talk on crypto social platforms is the topic of institutional money flooding into the crypto realm. When will instutitional money come to cryptos? Investors expect this to happen any day. They remain hopeful that it will take the price of cryptos to new heights. Just how realistic is this expectation. We investigate.
When will institutional money come to cryptos?
As the price of Bitcoin continues in its current slump, one cannot help but wonder if institutional money will ever be coming into the crypto realm? As quickly as the doubt started creeping up, it subsided again with news of a major venture capital firm announcing a $300 million crypto fund.
The firm is Andreessen Horowitz, an extremely high-profile venture capital firm. Can this be what we’ve all been waiting for?
What’s more, the crypto fund named a16z crypto will be co-led by the firm’s first female investment partner, Kathryn Haun. She is also a lead investor in the fund as well as a general partner at Andreessen Horowitz. The news puts her in a position of being one of the most powerful investors in technology.
Next to her, heading the fund is Chris Dixon. He is a general partner at the company and previously worked at eBay. They will be making decisions regarding which crypto companies, projects, and coins to invest in. a16z is said to operate as a separate legal entity. Dixon explained that this is due to the fact that in the past Andreessen Horowitz came very close to reaching the percentage of its capital that was allocated for investment in the crypto industry.
Both Dixon and Haun are of the opinion that cryptos are evolving and still in early days.
The fund is said to be looking at investing mostly in projects that feature new crypto technologies and widely used protocols. Before assuming her new role at the firm, Haun taught crypto and regulation at Stanford University. She was a federal prosecutor who led the investigation into Mt. Gox and a board member of Coinbase.
Why is it taking so long?
It is said that institutional money will be the real growth driver behind the crypto market. But when will this take place?
According to an article on www.themarketmogul.com, private backers find the crypto industry appealing due to the possibility of making large profits and use it as a unique platform for managing their funds. The article “Institutional Investors Enter the Crypto Market” says that these investors are not necessarily interested in purchasing the cryptocurrency itself.
It is still rather difficult for institutional investors to buy into cryptocurrencies. Reason being due to the high volatility associated with the market, a lack of transparent price formations as well as lack of anti-money-laundering and know-your-customer systems.
What the expert says
Bitmart CEO Jacques Serfontein has been hailed as a crypto expert by various international media outlets. He has the following to say on the topic:
“If one takes a close look at Bitcoin’s pattern of the last four years, it is clear that we may see the influx of institutional money coming to the crypto industry in about four months from now.”
Serfontein also says that investors may be surprised by which coins will benefit from the influx of institutional money.
“Some coins will drastically increase in value whilst others won’t. This is due to the fact that exchanges are adding more alt coin pairings. This means that investors can invest directly into a particular alt coin and not have to follow the Bitcoin route first,” said Serfontein.
Until such time, Serfontein suggests investors HODL as winter is not over yet. Why not consider joining the Bitmart Forex Trade Copier Account? You can make 19% profits on your investment every month. Click here for more details.