The Face Of Cryptocurrency Is Changing Because Of Big Money Investments
What was once a fringe investment culture, cryptocurrency has now caught the attention of big investment firms on Wall Street. Something that the cryptocurrency market hasn’t seen in the past is big money from billion dollar investment firms. This year has been a big year for both the advancement and appeal of cryptocurrency investments by large investment firms. The resulting activity within the market has been a big push for higher cryptocurrency prices. This is likely to continue even in spite of the concern about digital currencies in countries like China.
The co-founder of a cryptocurrency fund, BlockTower Capital, Matt Goetz, echoed this same thought process and has explained how cryptocurrencies and the market focused on it doesn’t have to only behave like normal stocks. “As more capital comes in the space, from a market structure standpoint, whether it’s funds or some other structure, that will likely be a bullish catalyst for pricesI think the space is going to continue to get more competitive, because people are seeing the opportunity set.”
Another founding father of a cryptocurrency investment fund supported this stance as well, “Given the total market cap of cryptocurrency of say $150 billion on any given day, and then you add say a billion dollars, prices are going to rise. So yes, the money coming in to the market is going to raise prices – as long as there’s not any major sell-off.” – Thomas Kineshanko, co-founder of Protos Cryptocurrency Asset Management.
Though the short term approach to trading digital currencies is in the lime-light, many are also targeting the long term strategy, which is very different. Institutional investors are not likely to short cryptocurrencies due to the volatility but more so could stay the course of longer term investments. While this isn’t fully the “Wild West” investment that many assume, the asset class of cryptocurrency certainly has a long road ahead before is can hit the mainstream.