Genesis Trading’s head of market insights says that the institutional investment growth in the crypto space over the last 12 months “has been astonishing.” The executive added: “We’re seeing strong signs of that accelerating over the next year.”
Weak Signs that Institutional Investment Growth will Accelerate Next Year
Noelle Acheson is head of market insight at Genesis Trading. Tuesday, she shared her vision for cryptocurrency markets and the expectations investors have heading into 2022. She stated:
Amazing institutional growth has occurred in the past 12 months. We’re seeing strong signs of that accelerating over the next year.
Genesis Trading offers a fully-service digital currency prime brokerage. It offers market participants an integrated platform for trading, borrowing, lending, and custodial digital assets. Digital Currency Group (DCG), the biggest private investor in digital assets and blockchain, is the wholly-owned subsidiary.
Acheson said that both institutional investors will be attracted to tokens directly and crypto ecosystem companies. She added that investments in crypto market infrastructure companies are likely to accelerate given “the amount of money out there looking for returns.”
Her explanation was that institutional investors are diversifying their portfolios by investing in smaller, more risky cryptocurrencies than bitcoin and ether.
“One of the big developments over the past 12 months was the migration of bitcoin mining from China. A lot of that went to the United States … Even more significantly for the bitcoin market directly is the access this gives bitcoin miners to financing,” Acheson further opined.
Nickel Digital Asset Management’s survey found that 82% (of institutional investors) and 91% (8 of them wealth managers) plan to expand their exposure to cryptocurrency between 2023 and now. Even though they are expecting major market corrections, institutions have started to accept crypto.
In October, global investment bank JPMorgan said that “institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold.” A growing number of large banks are offering crypto products and services to their clients due to high demand. US Bank said that its crypto custody services will be launched in response to the strong demand it received from institutional clients.
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