Institutional Capital to Acutely Consolidate Cryptoeconomy, Says Blockchain CEO
In new comments to the press, Blockchain Ltd. CEO Peter Smith envisaged the bitcoin price undergoing positive price consolidation over the next quarter owing to recent regulatory clarity around crypto. Smith sees such clarity as paving the way for that much more institutional capital to flow into cryptocurrencies’ collective market cap.
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Institutional Capital to ‘Level Off’ Crypto Market
In a July 20th interview with Bloomberg, Blockchain’s Peter Smith emphasized how institutional money is gradually flowing into the crypto space as its fledgling ecosystem develops supportive infrastructure for these traditional venture enterprises. The resulting cash inflow will bring further robustness to the cryptoeconomy, per Smith.
“I think we are seeing another slow consolidation in the market now, and we are likely to see a moderate but positive consolidation over the next quarter,” noted Smith.
Recently, Blockchain Ltd. launched an enterprise-grade product dubbed Blockchain Principal Strategies (BPS) in a bid to offer big financial institutions the conventional conditions required for large-scale investments. The platform offers an over-the-counter trading service, with the dynamic allowing big buys and sells without suddenly moving the wider markets.
According to Smith, the introduction of the new institutional product, as well as others like it, will “level off” and consolidate the overall crypteconomy, particularly bitcoin’s share of it.
Paving the Way
In his July 20th interview, Smith pointed out that the BPS’s target market, for now, is the United States’ institutional players. However, full-fledged investment from big enterprises could take another year, he predicted.
Smith also acknowledged that there are considerable risks for these firms, even with available crypto insurers.
“Yes, there is a lot of risks involved. I think it will maintain a pretty small part of people’s portfolio, particularly institutional side. That said, the crypto market is still pretty small. When you benchmark it against any major asset class, the crypto market, bitcoin itself, is still a pretty niche market.” said Smith.
It’s Getting Institutional Up in Here
The arrival of institutional money has translated into bitcoin’s recent price surge, per Barry Silbert, founder of the venture capital firm Digital Currency Group (DCG), who stated this week that institutional capital is doing its homework on ways into the crypto market.
However, much of this institutional “homework” leads to bitcoin rather than altcoin investments, Peter Smith argued in his own recent remarks.
Bitcoin has struggled to regain similar footing as last year, though many are certain of an incoming bull run. Billionaire Marc Lasry envisages Bitcoin to hit $40,000 USD in the not-so-distant future, for instance. Others, like respected trader Peter Brandt, see “boom” and “bust” scenarios as possible.
I bought BTC/USD on Monday and early Tuesday. I will take the trade a day at a time. If the bottom holds we could be heading a lot higher. If the bottom fails then we could go to the 3k level.
— Peter Brandt (@PeterLBrandt) July 20, 2018
Back to Blockchain, winning over impactful institutional investors takes trust of course. To that end, with all recent the crypto-related robberies making headlines, the London-based company appointed George Sax, a former senior official of United States Secret Service, as its global head of security on July 19th.
During Smith’s aforementioned interview, the CEO stated that Blockchain were constantly under cyber attack, even from state-level actors. However, Smith chose to stay “tight-lipped” about the details.
Do conventional enterprises prefer Bitcoin over altcoins? Should they? Share your views in the comments section.
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