Institutional Investor Money is Still Very Interested in Crypto Innovations

The cryptocurrency markets crashed once again in the past few days, with prices of top coins plummeting on Wednesday. The bear trend closely followed news released by Goldman Sachs that the major money managing company would be postponing its plans to create a new trading desk for cryptocurrencies.

The initial announcement that the potential trading desk had many within the markets excited, and so the realization that its actualization will be extended indefinitely had a severely negative effect on the market.

The news came on Wednesday morning, when the major Wall Street corporation announced that the cryptocurrency plans would be put “on the backburner.” However, some analysts remain optimistic in the face of the grim news. In particular, some experts highlight the fact that Goldman Sachs still plans to offer new Bitcoin futures and custody markets, which could help to funnel even more institutional support into the growing Bitcoin market and cryptocurrency community.

Bullish Theorists

One major optimist in the cryptocurrency community is Mitch Steves, who is employed as a professional analyst at Canada’s Royal Bank of Canada, spoke to CNBC on the topic and stated his belief that Goldman Sach’s decision is not “a really big concern.” Steves himself is already a well-known name in cryptocurrency circles, mainly because of his famous statement a year ago that he thought the blockchain industry would climb to a value of USD $10 trillion.

First, Steves outlined that he knows several institutional investors that remain very much interested in Bitcoin and cryptocurrency investment, even despite the gloom and bearish sentiments following the recent move by Goldman Sachs. To him, the Goldman Sachs decision to postpone their cryptocurrency trading desks is a very minor setbacks clearly overshadowed by the optimistic interest of major institutional cryptocurrency investors all over Wall Street.

A Simple Explanation

Steves also speculate on some of the reasons that Goldman Sachs might have decided to delay the trading desk theory indefinitely. He personally believes that the money manager likely had trouble gaining access to enough “bigwig” clientele who might want to allocate some of their funds to the volatile cryptocurrency markets.

Additionally, he highlighted the fact that Goldman Sachs is now working on their partnership with Circle—a retail investment resource—as one reason that they might not be able to secure institutional interest nearly as much as they may have wanted to. But as a potential solution to this Sachs issue, Steves believes that the creation and acceptance of a Bitcoin ETF by the Securities and Exchange Commission would help to draw institutional investors, many of whom do not want to personally hold cryptocurrency and all that this process entails.

Bullish Outlook

The Canada Royal Bank executive still sticks by his original prediction that the blockchain and cryptocurrency industries will reach a whopping USD $10 trillion in value within the next ten years.

He cites a “technical perspective” as the reasoning behind his bullish outlook, saying that looking at the market in a simple one-year snapshot would not due it justice, and that a long-term valuation is still resoundingly upbeat and bullish.

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