Mature Crypto Market to Attract More Institutional Players
A mature cryptocurrency market is expected to attract more interest from institutional participants, says a Hong Kong-based crypto trader.
Regulations are necessary to stabilize the digital currency space, and a more mature market will encourage institutional investors to step up their participation, according to a Hong Kong-based cryptocurrency trader.
Adrian Lai, a founding partner at digital currency investment firm Orichal Partners, believes that global rules would greatly diminish fears of market manipulation as well as volatility.
He explained that the “irrational” digital currency market of 2017 was due to the lack of regulatory oversight and participation of institutional allocators. Fortunately, governments across the globe have realized the need for regulation and have started to issue guidelines on cryptocurrency trading and initial coin offerings (ICOs). Lai, who regularly conducts educational seminars on cryptocurrency investment in Hong Kong and Macau, has noticed a significant rise in interest this year from institutions such as fund managers and private banks.
Global push for regulation
The US is leading the global push for cryptocurrency regulations to prevent fraud and protect consumers from criminal activities related to digital currency trading. In March, the SEC issued a public statement laying the ground rules for digital currency exchange registration in the country and for enterprise that want to start a cryptocurrency trading business.
Last week, the Financial Conduct Authority (FCA) of the UK told companies engaged in cryptocurrency derivatives trading that they must comply with all applicable laws and possibly seek a license to operate.
South Korea, Japan, the Philippines and other Asian countries have set their own rules about cryptocurrency trading, exchanges and ICOs.
Majority of institutional investors not interested in crypto
Lai’s assessment clashes with a recent survey Context Summits conducted among more than 400 institutional investors such as family offices, pension funds, and sovereign wealth fund. It showed that 71% of the respondents had no plans to allocate to crypto-related funds while some 18% had not yet decided.
The survey also established that almost half of the respondents had no idea what to make of digital currencies.
Without a doubt, an unexpected pump in arising and this institutional money is going to play a big factor.
it will happen anyway I feel that is why we will have to keep investing
It's not completely clear for me yet whether This is something to be happy about. For the short term, maybe. I'm just somewhat puzzled by the fact that the regulators are being welcomed into the crypto-space so open-armed, as well as the whales, for that matter. Isn't Bitcoin supposed to be the worlds first method of transacting without regulators taming it, just like they did every other asset in existence? Aren't we supposed, as freedom loving human beings, to take our own responsibility when we decide to invest in an ICO and not come crying at the regulators door when that ICO proves to be a scam-coin?
And for the whales: they are just way to early. The crypto martket cap is still way to low for it not to be easily manipulated by them. Crypto's were supposed to be the world's first ever asset, or security as it appears now the SEC has their hands on it, that was obtainable for us, the common people before the professional traders got a chance. Best case scenario would be that they enter when the market cap was way higher. As @therealtomsawyer said somewhere in this thread: they will now "shake the Bitcoins out of weak hands", while making it even cheaper for themselves to buy even more Bitcoins.
Bitcoin is in danger of becoming just another means for the rich to get richer this way, and what difference would the first decentralized, public blockchain have made then?
I touch upon this in my articles too, so have a look if you're interested.
Thanks for keeping us up-to-date, @cryptonewsss!
fantastic how you think about it I totally agree with you, the purpose of their is to scare us so that they can make money on it and when not but we wil not listen to them, lets be together crypto millionaires 😁😁 Thanks For Your Support Keep it u With Your Good Work and success
It's always a pleasure to meet like-minded people, @cryptonewsss :-) You have a new follower here!
Thanks For The Support and a have followed back 👌👌
This all means more wild swings and attempts to shake the Bitcoins out of weak hands. Many people will fall for the whales’ manipulating (both directions). I am convinced cryptocurrency is here to stay. I therefore buy equal amounts every week and have done so for several years now. I’ve successfully used this approach with stocks and precious metals.
Yes that’s treu what your saying and Great keep it up and don't listen to much to the people who say it is a bubble or what ever
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