The former Fortress hedge fund manager spoke earlier this week at the Reuters Global 2018 Investment Summit in New York and confirmed his views that he expects major financial firms will soon offer bitcoin or other cryptocurrency products as investment options.
Institutionalization of Cryptocurrencies
While many in the cryptocurrency community are beyond satisfied with Bitcoin’s 580 percent increase this year, the good news does not seem to be over for now.
Mike Novogratz, who has made news in the past by his public comments supporting Bitcoin and cryptocurrency, had plenty to say regarding cryptocurrency mainstream adoption at the Reuters Global 2018 Investment Outlook summit earlier this week.
“The institutionalization of this space is coming,” he declared. It’s coming quick.”
Novogratz elaborated that he not only expects for financial firms to offer cryptocurrencies as a product but that they will be easily purchased over the phone and through normal trading mediums. All of this he expects to happen in about six to eight months.
“When it’s that easy, the price of Bitcoin or Ethereum is going to go much higher. And that is a lot closer than people think,” said Novogratz.
The former Fortress executive who is now founder of Galaxy Investment Partners – a group that is dedicated to cryptocurrency projects – has admitted he firmly believes that in five years the combined market value of cryptocurrencies will be worth $5 trillion dollars. But for that happen regulations must be put in place to foster mainstream adoption.
Ready for mainstream?
Many in the community are excited about signs that Wall Street and institutionalized investors could be on their way.
Specifically, the CME Group announced the launching of Bitcoin futures starting in December and recent comments by CBOE president Chris Concannon on its confidence in Bitcoin ETF’s brings credibility to Mike Novogratz’s claims that mainstream adoption will occur in 2018.
Despite the bullish statements by Novogratz, including his prediction that the price of Bitcoin would hit $10,000 by August 2018, having Wall Street and big financial players involved in cryptocurrency would not guarantee a continuous price increase, especially if the internal civil war between small blockers and big blockers does not subside and transaction fees don’t decrease from all-time highs.
It will be interesting to see how soon major financial firms join the cryptocurrency revolution and if Mike Novogratz predictions remain accurate.
Do you think institutional adoption of cryptocurrencies will help or hurt the everyday normal investor? Let us know what you think.
Images via Market Watch, Business Insider