More and more, institutions are thinking about at least not being 0% when it comes to allocations in crypto.
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Work with the Regulators
The bear market for blockchain has turned several away from the opportunities of bitcoin and beyond. But this is not the 1st time this happened. These types of corrections have also helped in correcting the hype, and lack of order in the markets. We have learned from several lessons even in the private companies like Uber that you have to work “with” the regulators. But can some of the rules and regulations see confusing? This post outlines this pretty well outlining that “While the Commodity Futures Trading Commission (CFTC) treats crypto as commodities, the Securities and Exchange Commission (SEC) insists they are securities, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) applies currency rules, and the Internal Revenue Service treats digital money as property.”
Recently, we heard about the Bitmain red flags. Now, according to Cointelegraph, we are continuing to hear about the “South China Morning Post pouring more cold water on the plans of mining giant Bitmain to go public, just a day after the Hong Kong Stock Exchange (HKEX) told Cointelegraph that any hesitation on part of the company was “rumors.”
The Path to Institutional Infrastructure
However, on the flipside, the rules, red tape, and regulations are what are going to open the pathway for the institutions. We started seeing this with qualified and institutional grade custody with the larger institutions. The regulation is the foundation of several of the institutions who often have to lay the infrastructure before being able to develop confidence in the network, and also establish a way to integrate it into their ecosystem. Eventhough the bear market has lost interest in the institutions as a whole, Coinblaze references a Diar report that notes that “Grayscale reportedly registered $216 million in net inflows into its Bitcoin Investment Trust in the first three quarters of 2018, giving Grayscale custody of over one percent of Bitcoin’s circulating supply. As previously reported, GBTC is now holding over 203,000 BTC. In 2018, Coinbase reportedly saw a 20 percent increase in BTC trading volume during OTC markets hours, while GBTC saw a 35 percent drop in volumes comparing with the same period in 2017.” Grayscale isn’t the only one who’s excited about buying the dip. A few additional developments are the new funds that have allowed investors to have access to exposure at a discount. Here’s a couple new developments which also justify the slow growth for the institutions.
- Over a half $billion has been transacted by Genesis capital lending, arbitrage, or remittances
- Bitwise opens up 2 funds for institutional investors
- Tagomi, a digital asset firm backed by Peter thiel opens
- Swiss Bitcoin ETP achieved massive volume as institutional investors bought when the market is low
- Binance launched subsidiary accounts to provide exposure for institutions
- Bakkt will have a platform that settles bitcoin futures in January 2019.
- Nasdaq will also enable bitcoin futures shortly after
- Huobi Global has extended partnerships towards more institutional investors in both Hong Kong and Singapore
Finally, a word about Genesis Block Holdings:
Genesis Block Holdings is a blockchain venture capital firm, crypto quant hedge fund, and mining company focused on investing in blockchain projects within the ecosystem. We are laser focused on bringing the power of capital, network, and expertise to frontier technology teams to solve the world’s biggest problems
Under no circumstances should any material on this web site be considered as an offer to sell or a solicitation of any offer to buy an interest, token or coin in any individual company or investment fund. Any such offer or solicitation will be separately made only by means of the Confidential Private Offering Memorandum relating to the particular fund or persons who, among other requirements, meet certain qualifications under U.S. federal or other international securities laws and generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments
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