For those questioning whether institutional grade investors would actually use Coinbase's custody solution...
Coinbase announced that not only are investors using Coinbase Custody, but they have secured at least one very large one.
Coinbase announced that they have already partnered with a $20 Billion dollar hedge fund through their Coinbase Prime services.
They wouldn't name publicly which fund this was, but said that it had roughly $20 billion under management.
(Source: https://www.ccn.com/coinbase-scores-major-whale-for-institutional-brokerage-service-report/)
Coinbase also said they have been talking with other large hedge funds that are interested in their custody solution for investing in cryptocurrency.
What is Coinbase Custody?
Coinbase Custody was launched on July 2nd in order to offer better solutions for institutional investors to enter the markets.
The service offers much better security than traditional exchanges.
It also offers insurance on the holdings.
On top of that, the service is said to be secured by Electronic Transaction Clearing (ETC) which operates in compliance with the SEC.
(Source: https://coindoo.com/the-coinbase-custody-for-financial-institutions-was-released/)
But wait, there's more...
Coinbase also revealed that they are seeking partnerships with other large hedge funds.
They are also planning on launching margin services for their clients by the end of 2018.
Which would likely really open the door for hedge funds to start using their products.
Hedge Funds will be first, but then other types of funds will follow suit.
The stampede is starting, do you hear the rumble in the distance?
Stay informed my friends.
Image Source:
https://blog.coinbase.com/coinbase-custody-is-officially-open-for-business-182c297d65d9
Follow me: @jrcornel
Great news. It was only a matter of time, but I am glad that bitcoin (and eventually other alt coins) is starting to get adopted by institutional investors and funds. Good find.
Why is it that for every piece of good news like Coinbase Custody; there is bad news like Bitcoin Diamond? 🤑👍🤑👎😩
2 steps forward, 1 step back?
Coinbase is the best exchange I ever used so far feeling excited after finding out this great news too. Hold all my assets in this exchange and my eyes are on ETF every sec and heartbeat is very fast lol. wish me luck guys also give me some support on steemit with your valuable upvote thanks.
It's not bad. Needs to lower their fees though.
Completely agree with you is there any other you know which have less few they are all same. Revolution should come in buying and selling market of crypto coins now its very long time.
Robinhood offers fee less crypto trading, that might be worth looking into.
I think it is only for USA. Is Robinhood available in United Kingdom?
I think it is only in the US.
Any other suggestion?
Okk coin base has come again out with a bang.Lots of new launches , programs , partnerships they are on a roll currently.
Personally I am very much thrilled about the launch of the coinbase custody program, I would be keeping a close on how it pans out and how much more of these hedges they will be able to get to partner them.
You and me both.
coin base its not for treading ^^ but its really good exchanger and most safe exchange ^^ first time starting from coinbase thank you post about coinbase ^_^
@jrcornel
Honestly? I don't hang my hat on ETFs. I mean it's not hard to buy for institutional investors with Coinbase Custody. Is it that hard just to buy a few coins and tokens? Will there be a "Shitcoin" ETF to ride the ICO selloff down?
Honestly I think it makes all the difference. There are so many people that won't buy crypto because they don't trust unregulated exchanges. If they can buy a crypto ETF through a regulated stock exchange, like an Etrade or Ameritrade, it will make a world of difference in terms of money coming into the space.
Hi @jrcornel cryptocurrency in popular wallet Bank in coinbase blockchain high standard banking online cryptocurrency business all today
Thanks @jrcornel, I haven't even heard about Coinbase Custody before. $20b, that sounds so big.
Yes, that would be one of the bigger hedge funds out there. There are not too many with over $10 billion in assets under management...
Exactly, I hope it would be managed well as they haven't dealt with so much before
Good, but not major, news. 20B AUM is still small potatoes in the financial world. If that’s the whale the others are likely more in the 100-500M range.
Any marginal buying is good though.
Look up how many hedge funds have assets over $20 billion... it's not a long list.
If you’re just looking at hedge funds it would put t at about #50 on the list. And it’s not like all that money is going into crypto. But that’s not the right comparison.
BTC and other cryptos are cryptocurrencies so we need to be looking at the forex market. We need hundreds of billions of fiats coming into the system before BTC or any others really become money.
If you just want to trade BTC like an equity then these things don’t matter so much.
Still, all new marginal buying is positive for the market.
Correct, though they aren't really being used as currencies currently. In fact most are failing in that regard or severely lacking in technology to compete with a digital fiat. Right now their appeal is as a digital store of value due to limited supply. Akin to digital gold - at least in regards to bitcoin. Speculation accounts for the large valuations of just about every other coin. Again something you see in assets, not currencies.
Regarding the funds, they specifically mentioned hedge fund in the news release which was why I used it as a reference point as well.
It wasn't so much to argue, but more to point out that $20 billion is a large amount of money for a hedge fund, as you pointed out that puts them in the top 50 (or so) in the entire world.
Overall positive news although the immediate impact is negligible as institutions continue to focus investment and capital into infrastructure and not the actual assets. However, the more onboarding gateways available, the better the demand to drive price.
Great point. Many of these institutional investors are not buying coins. They are buying equity in crypto businesses.