Another study by TABB Group recommends that institutional investors will allocate to cryptocurrency after a couple of significant issues are settled.
A heap of cash from institutional investors is sitting inactively; holding up to be invested in the cryptocurrency space once three major issues are settled, according to another study by research and counseling outfit TABB Group.
The report is called “Crypto Trading: Platforms Target Institutional Market, ‘’says that 2018 is getting down to business as the year cryptocurrencies win over institutional investors.
Monica Summerville, TABB senior analyst and author of the report, said that
“The word on the street is that a significant amount of additional institutional money is being amassed, sitting on the sidelines, held back by a lack of greater regulatory clarity, institutional grade data and enterprise-ready infrastructure, waiting for the right conditions to enter the market, expected to begin happening this year.”
The study is the first of many reports that would investigate the role of institutional players in digital asset trading markets and the execution platforms competing for their business. The report addresses key elements for securing the digital asset market and talking about the developing market progression and highlights no less than seven virtual currency exchanges or platforms focusing on institutions.
The following portion of the report will examine an important blockchain innovation improvement that helps both centralized and decentralized exchange models, and the techniques utilized by traditional buy and sell side intuitions in digital currency trading and investing.
Excellent income is a significant inspiration for institutional investors
Summerville also takes note that institutional interest has always been piqued by outstanding alpha and income. In the cryptocurrency space, the best exchanges are assessed to make as much as $3 billion day by day in income from trading fees. Also, over-the-counter (OTC) cryptocurrency markets give higher spreads or commissions compared to the mature financial markets and investment in digital currencies offer greater profit margins because of lower connection to other asset classes.
She went ahead to state:
“That interest is coming from traditional buy-side players, specifically hedge funds, proprietary trading firms, pension funds and sovereign wealth funds, as well as private wealth, miners and early Bitcoin adopters. As a result, the venue and vendor community is responding with a range of new solutions targeting institutions.”
The results of the TABB study echo an earlier Thomson Reuters overview, which demonstrated that about 20% of financial institutions intend to search for opportunities in cryptocurrency throughout the next year.
Among the 400+ Thomson Reuters customers surveyed, 70% said they anticipated on getting involved with cryptocurrency in the next three to six months.