Genesis Trading’s head for market insights, said that institutional investment growth in crypto has been “astonishing” over the past 12 months. He added that there are strong signs that this trend will accelerate over the next year.
There are strong signs that institutional investment growth will accelerate next year
Noelle Acheson from Genesis Trading’s Market Intelligences shared her outlook on the cryptocurrency market with CNBC Tuesday. She also discussed what investors should expect when entering 2022. She stated:
Amazing institutional growth has occurred in the past 12 months. There are strong indications that this trend will accelerate over the next one year.
Genesis Trading is a digital currency prime brokerage that offers full-service. Market participants have access to a fully integrated platform that allows them to borrow, lend, trade, and store digital assets. Digital Currency Group (DCG), the largest private investor in blockchain and digital asset companies, is the wholly-owned subsidiary.
Acheson stated that institutional investment growth will be driven by both token investments and crypto ecosystem companies. Acheson stated that crypto market infrastructure investments are likely to increase due to “the amount money out there looking at returns.”
She said that institutional investors are diversifying their portfolios by investing in smaller, more risky cryptocurrencies than bitcoin and ether.
“The migration of bitcoin mining to China was one of the most significant developments in the past 12 month. A lot of it went to the United States…. Bitcoin miners have access to financing that is even more important,” Acheson added.
Another indicator that institutional adoption is increasing for cryptocurrency is a Nickel Digital Asset Management survey showing that 82% wealth managers and institutional investors plan to increase their cryptocurrency exposure in the future. Although they expect a significant correction in crypto markets, institutional investors are open to crypto.
Global investment bank JPMorgan stated that institutional investors are returning to bitcoin, possibly seeing it as an improved inflation hedge than gold. Due to high demand, a growing number of large banks offer crypto products and services. US Bank for instance, stated in October that it will launch crypto custody services because of strong demand from institutional customers.
This story contains tags
Bitcoin outlook, bitcoin outlook 2022, crypto-market, crypto outlook and cryptocurrency outlook, DCG Digital Currency Group, Genesis Trading, genesis Trading crypto, institutional adoption.
What did you think of Acheson’s comments? Comment below to let us know your thoughts about Acheson’s comments.
Kevin, a student of Austrian Economics and a evangelist since then. His interests include Bitcoin security, open source systems, network effects, and the intersection of cryptography and economics.
Image Credits: Shutterstock. Pixabay. Wiki Commons.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by or alleged to have been caused by the use or reliance of any content, goods, or services in this article.