фото показано с : blokt.com

Digital currencies aren’t in a comfortable place. Most of the prominent cryptos have lost over 50 percent of their market value, and a bullish reversal is yet to happen. The prices have remained steady around the $6,000 mark, and a heated debate on the “need” for institutional investors in the market is ongoing. It is interesting to note that cryptos have received unusually high funding this year, and prominent investor Garry Tan believes that institutional investors could help the crypto industry move to the next level.

Tan is an early-stage investor in both Coinbase and Instacart. His Twitter account suggests that he is invested in over 100 start-ups and holds over $20 billion in market value. He expressed his views on the microblogging site, saying:

“Super confused at the fud about institutional investors coming into crypto funds. Is it a big deal? Yes. Is it a negligible amount? No. It’s as much as a given endowment might put into a core venture capital investment. That’s the kind of return they expect.”

He added:

“The crypto winter generally makes it safer for super-long-term oriented Yale-model institutions to enter at a price that isn’t dangerous. You know what is scary? Investing and then immediately seeing an 80% drop. That is hard to recover from.”

Crypto investors are also looking for indirect routes for investing. This includes participating in crypto funds, which helps them in pouring bigger amounts into the industry safely. Prominent American exchanges like Coinbase are providing custodial services to their users as well. In fact, Coinbase has bifurcated its trading platform into Pro and Prime, the latter dedicated specifically to experienced traders and institutional investors.

Cryptocurrency funds are emerging quickly in the industry. These funds usually work like conventional hedge funds. Some benchmark indexes tracking the top 10 cryptocurrencies in the market have also emerged, helping these funds review their performances and improve their portfolio holdings as well. Depending on the fund’s management and its investment objective, the lower cap on investments could be a few hundred thousand dollars or more.

One of the glaring examples of such investing is of Yale University. The $29.4-million endowment fund is looked after by David Swensen, who recently took $400 million worth of positions in two crypto portfolios. One of these funds is managed by Coinbase-backed Paradigm. Some core crypto believers think that Bitcoin’s institutionalization is not a good sign and goes against the idea of decentralization.

Early Coinbase Investors Makes a Case for Institutional Investment in Crypto was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

177 +