Donna Redel Talks About Crypto in 2019, Identifies What Attracts Institutional Investors into Bitcoin
With 2019 speedily approaching, there are growing concerns among cryptocurrency investors, enthusiasts and traders regarding the state of industry as well as the possibility of institutional investors flooding the market.
But, to successfully do this, experts have advised that there are lots of work to be done in terms of operational restructuring and strategies that will shape the attitude of global community towards the adoption of these digital asset.
There’s also the need for the industry to adjust to a number of regulatory and technological issues that could arise as the digital market continues on its growth path. This will need to be addressed as quickly as possible, given that it’s one of issues bothering traders in the market.
A crypto investor and expert who is optimistic of the prospective buoyancy of the digital market industry in 2019 is Donna Redel, a professor of financial technology, blockchain and emerging technologies, as well as a former chairman at the Commodity Exchange. And she has summed up these issues in what she regards as ‘more urgent questions.’
According to Redel, there is no denying the dramatic changes the industry underwent since it began to experience new innovations in blockchain technology and regulations. However, she thinks that more should be done, even with the fast paced developments in the industry.
She believes there are certain fundamental questions confronting the industry as it marches into the new year. One of these is concerned with the strategies the crypto marketplace will employ in order to manage major potential risks.
Also, given the possibility of strict regulatory measures and operational frameworks being led by the SEC and CFTC, Redel wants the industry to look inwards and proffer solutions to the lack of consistent standards that’s currently plaguing the industry.
Other concerns that the industry must attend to includes reconciling institutional adoption of digitals assets with decentralization policies, identifying market opportunities, and providing strong regulatory framework for the possible movement of institutional investors into the market.
At the heart of Redel’s overarching concerns are the rife apprehensions vis-à-vis the industry leaders that will lead the charge to institutional adoption of digital assets.
However, going by some historical precedents, she’s not deterred despite these scary concerns which apparently appear insurmountable for the industry. Redel, who cited the historical lessons that yielded significant growth of the industry, believes that ‘when we think about advancing the use of crypto and digital assets, it is helpful to draw on history.’
So, the industry has grown with the introduction of a number of inventions including financial products or and other asset classes. However, it takes perseverance as well as dedicated, trusted and patient leadership to achieve the expected growth level required to fast track the adoption of the industry’s assets. Similar steps have to be taken to build an ecosystem for institutional investors.
Clearly, certain industry leaders are expected to take the lead in ensuring that the institutional adoption is largely sustained by values that have been built on the trust active industry players have put in centralized marketplaces.
In 2019, Redel projects that investors and traders should expect more and more successful alliances and mergers –like the one that took place between COMEX and NYMEX in the early 90s.
Such mergers could give the digital asset products firm ground for influx of more and more institutional investors and thus provide creative solutions aimed at building infrastructure and an efficient liquid security token market.
She also identified major players that could trigger optimism by investing more money into the industry. These include Fidelity Investments, Nasdaq, and Bakkt, among others.