A tidal wave of capital from asset managers is coming Institutional Money Is Making Its Way Into Bitcoin
Slowly but surely, institutional money is making its way into bitcoin.
Billionaire Michael Novogratz, who has invested approximately one-third of his wealth in cryptocurrencies, has reportedly raised $250 million so far for his crypto merchant bank during the recent price crash. A marquee name, Foxconn founder Terry Guo, is also among the investors.
This is good news for cryptocurrency's price volatility. Institutional holders generally invest large amounts of money for long periods of time, thereby stabilizing prices and protecting price movement from fickle day traders who move in and out of their positions several times in a day.
Bitcoin futures were expected to stabilize price movements for the cryptocurrency but the lack of big-name investors and low volumes of trading has ensured that they follow, instead of lead, spot exchange prices.
And there might be more good news on the way. Again, Barry Silbert alluded to the construction of infrastructure to facilitate Wall Street access during his interview.
“Behind the scenes, infrastructure is being built - on ramp, off ramp – to enable Wall Street to access this asset class in ways that you cannot imagine,” Silbert said, predicting that a “tidal wave of capital” from asset managers around the world will make its way into crypto markets in the next 12 to 24 months.