What Exactly Is Keeping Institutions From Changing The Market Narrative?
The year that just ended sow a lot of interest taking place from different institutions, these are institutions who were part of the hype drive, one that was expected to have ushered the altcoins together with bitcoins out of the very prolonged bear market in 2019.
From all this, the prospect for adequate institutional investments within the crypto market has proved to have far more reaching effects than the application of the blockchain technology. It was suggested that the investors within the market had been bored with the cliché of what the blockchain technology is all about and the potential it offers. Instead, they seem to be more interested in how they will be able to profit from the underlying asset class.
Change In Institutional Investors
As the investor begins to prepare for the new asset class, the crypto ventures have also gone ahead to adjust their current investment infrastructures that will be able to accommodate the current changes that are expected to ensue from the influx of the sophisticated investors within the market.
Binance, which has been considered to be among the top crypto exchanges in the market when looking at the trade volumes, has gone ahead to add sub account features into their systems.
It is the likes of the Chicago based crypto exchange the Seed SX was able to introduce the spot trading facility for the different institutional investors; the Coinbase which has been considered as the number one crypto trading platform in the US went ahead to launch the OTC, Over the counter trading platform that can be used by the institutional investors; the Circle Polonie which went ahead to open a trading service that is exclusive for the institutional investors, together with several other strides within the system to achieve the high net worth type of investment categories.
What we could say is the most notable investment interest within this class of investors are those who are being offered by the Intercontinental Exchanges Fidelity and Bakkt.
The platforms have witnessed a growing interest, which has gone to suggest that the products will be able to turn the tides within the crypto market, it is because it has been perceived that they will be able to offer the market a fresh inflow of liquidity and capital.
Time To Rewrite The Market Narrative
In November 2018 when we witnessed the market-crushing, where it went to fall below the supposed $6,000 at that time, many thought this was the best time for the institutional investors to join the market.
However, the price has unfortunately been able to breach the many speculated bottoms, and at the moment it is hovering at about $3,400, and yet most of these investors in the market have stayed. So we should ask ourselves if the investors could actually take the necessary steps and change the narrative of the current market, what exactly is stopping them?
Some of the pointers to look at is the liquidity issue, the regulatory uncertainty surrounding the market, weakness to the market manipulation and not forgetting the crypto custody issues. Primarily, it could be the lack of a proper framework in the market as the reason behind the investors not fully immersing themselves into the market.
It is clear that the crypto market needs to rise above the current stigma, these are the insights that were shared by John Devlin, which is the Chief Analyst at the P.A.I.D. Plus the market will need to evolve itself and be a little regulatory compliant, it was found, according to P.A.I.D that 68% of the Bitcoin exchanges in the market that is across Europe and US, they are not KYC compliant.