2018 has been a crazy year for Bitcoin and crypto so far, with its price fluctuating wildly around the psychological price point of $8,000, and not succeeding in maintaining itself on its higher side. Bitcoin has shed as much as 70% from it’s all-time high of nearly $20,000.
Industry experts claim that the market is correcting itself, and the reason for it can be attributed to the regulatory uncertainty that still persists with regards to cryptocurrencies. Various countries have taken a stand in favour of or against cryptocurrencies, and many of them are still in the process of evaluating cryptocurrencies before declaring their verdict. However, with news of companies like Goldman Sachs considering launching cryptocurrency custody services, and exchanges like Coinbase adding new cryptocurrencies to their custodial services, the ongoing trends point towards the the increasing interest of institutional investors in crypto assets.
Here are 5 reasons why cryptocurrencies are going to be the next big thing for institutional investors.
1. Enhancement of custodial services
Coinbase recently announced that it is considering adding new crypto assets to its custodial services to enable institutional investors to store their cryptocurrency holdings safely. The new additions are likely to have been spurred by a potential demand for custodial services for these cryptocurrencies, which also reveals that institutional investors are looking at cryptocurrencies other than Bitcoin and Ethereum for investment.
Goldman Sachs is also considering offering cryptocurrency custody services which will apparently help overcome the barrier of lack of trusted custodianship for institutional investors. Ledger, the hardware crypto wallet manufacturer, which sold over 1 million hardware company also announced its support for 8 new cryptocurrencies recently.
2. US SEC’s stance on crypto assets
While the US Securities and Exchange Commission has rejected Winklevoss brothers’ Bitcoin ETF, its stance towards cryptocurrencies seems fairly positive. It highlighted that the proposal’s disapproval did not rest on an evaluation of whether bitcoin, or blockchain technology has utility or value as an innovation or investment, but it was owing to the inadequacy