Revolut’s CEO, Nikolay Storonsky, claimed that institutional clients did not show an extraordinary interest in investing in cryptocurrencies. He made these comments while speaking at the Web Summit 2018 in Lisbon, Portugal, during this week.
According to Bloomberg, the CEO of the digital banking app Revolut commented that there is no interest from big institutions about cryptocurrencies.
About it, he said:
“Unless these big institutional investors and hedge funds move heavily into the crypto world I just don’t think banks will move because they simply try to make money from their clients.”
During the year, virtual currencies have been in a bear market. Most of them lost between 65% and 95% of their value. Some of them even more. This is why enthusiasts and experts are waiting for institutions and wealthier investors to enter the market and trigger a new bull run.
At the same time, there are some experts that believe that the market has already bottomed and that it could soon start growing again. Despite this, Storonsky and Larry Fink, BlackRock’s CEO, are sceptical about that.
Fink, for example, explained that his firm would not be launching a cryptocurrency related ETF. He is waiting for the market to become more mature in order to do so. The U.S. Securities and Exchange Commission (SEC) might approve a crypto ETF at the beginning of the coming year. This is another reason why experts believe that the market will also grow in the near future.
Clearly, it is important to take into account that Revolut’s CEO is a respected and recognized expert in the cryptocurrency market. But there are some institutions such as Goldman Sachs, Fidelity and the Intercontinental Exchange (ICE).
Fidelity, for example, launched anew separate branch that focuses exclusively on cryptocurrency assets. The new branch is known as Fidelity Digital Asset Services and it will be working with over 13,000 clients, including institutions.
The ICE is going to unveil a new service for institutions at the end of the current year. The main intention is to provide institutions with a compliant and regulated platform in the market.
Other companies and firms such as Barclays, Nasdaq, Citigroup and others are starting to plan their strategy for welcoming institutions to the cryptocurrency market.