Seven in 10 Institutional Investors Expect To Buy CryptosMainstreaming continues, despite the detractors, with major investment players signing on
Cryptocurrencies are now estimated to be worth roughly $2 trillion and — despite pressure from regulators — demand from investors continues:
In July 2021, FTX—the Antigua-based cryptocurrency derivatives exchange which offers futures, leverage tokens and OTC trading—raised $900 million from over 60 investors. This included venture capital firms Paradigm and Sequoia, hedge funds and the private equity group Thoma Bravo. It was the largest private equity deal in the crypto industry’s history, valuing the business at $18 billion—one of the largest rounds of financing for a digital assets startup.
In May 2021, Block.one —the Peter Thiel, Alan Howard and Louis Bacon backed blockchain software firm—pumped $9.7 billion into a new cryptocurrency exchange subsidiary called Bullish Global. Even excluding Block.one’s capital injection, there was $6.2 billion of private funding in the digital asset industry in Q2 of 2021—a 90 percent increase quarter-over-quarter.Carlos Betancourt, “Continued Investor Demand: A Reflection On The Crypto Industry’s Growth And Maturity” at Worth (August 23, 2021)
Generally, according to digital hedge fund principal, Carlos Betancourt, at one time, cryptos seemed just the opposite of what a typical institutional investor might take an interest in. But a lot changed in 2021:
According to a recent Fidelity Digital Assets study, seven in 10 institutional investors expect to buy or invest in digital assets in the near future, and over half of the 1,100 participants already owned such investments.Carlos Betancourt, “Continued Investor Demand: A Reflection On The Crypto Industry’s Growth And Maturity” at Worth (August 23, 2021)
Betancourt expects all-time highs for Ethereum and Bitcoin, as a result.
The question raised here at Mind Matters News earlier this month remains: Will going mainstream spoil the fun for crypto? It means becoming just another boring, safe way of doing business — more, perhaps to the liking of some than others who are currently in the field. We shall see.
You may also wish to read: Will going mainstream spoil the fun for crypto? Crypto exchange FTX.US is, for a tidy sum, naming a Berkeley sports field, with philanthropy thrown in. Going corporate mainstream includes being judged by mainstream standards. But is crypto ready?