Will Major Institutional Players Invest in Crypto Market?

Institutional Investment in Crypto Market

Invest in Crypto Market: If there is one factor that has always pushed investors away from investing in the crypto market, it is the volatility of the market. With constant fluctuations, price changes, and tech upgrades, investors have been reluctant to invest in the crypto market.

However, after the major price crash in 2018, the crypto market has seen relevant stabilization until recently. Apart from volatility and price booms, another factor that has influenced the credibility of the crypto market is the lack of institutional investment.

Although currently there is some interest from institutional players, the overall sentiment is hesitant. And the major reason is, yet again, the volatility of the crypto market. This is especially true for financial companies that commit to their customers for a legit return for their investment. Hence, these companies can’t risk the investment of millions with a high possibility of losing those millions in a snap.

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But is there any indication for this situation to change? Does it seem that major institutional players will invest in the crypto market?

The answer is YES!

Yes, volatility and lack of regulation have deterred institutional players from investing. But the following changes in the overall operations have sparked interest and changed the tide.

  • Price Trends: Currently, Bitcoin and other major cryptocurrencies have seen a major increase in their price without many fluctuations. Data suggests that these prices are to stabilize over time. This has created a calming effect on the crypto market allowing institutional players to invest.
  • Self-Regulation: The lack of regulation of the crypto market was a major reason why institutional players stayed away from it. However, efforts being made by independent institutions and governments have started providing clarity and consistency to the institutional players for the crypto market.
  • Improved Logistics: Another reason that made institutional players skeptical about the crypto market was the storage of cryptocurrency. Previously, this included the usage of third-party resources that didn’t guarantee the safety of assets. However, currently, several companies are working at bringing improved custody solutions for cryptocurrency, for example, Consortium Komainu.
  • Increased Liquidity: The lack of liquidity in the crypto market was another reason institutional players hesitated to invest. However, organizations that are actively involved in stabilizing the crypto market have come up with solutions that offer higher liquidity to the asset class. This has spiked the interest of institutional players to invest.

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Bottom Line

The Crypto market will be fully stabilized only when institutional players invest money. This will happen when major problematic issues of the market are resolved. Currently, major changes have been made in the direction to attract institutional players and there have been some positive results.

To know more about this and more crypto, keep reading Coin Informer!