Cryptocurrency wallet firm Blockchain as revealed a new product for institutional investors, in light of the increasing interest of endowments, pension, hedge and mutual funds in cryptocurrencies this year.
The institutional platform known as Blockchain Principal Strategies will provide institutional and family office customized access to markets including research.
An over-the-counter trading desk will be offered to the investors and this will serve as a ‘matchmaker and direct counterparty to clients, executing traders and managing associated risk’. Clients of the firm will be provided managed investment offerings and this will also come with access to vetted early stage token offerings.
Moreover, clients will have the chance to make direct equity investments incapable startups.
“…we will also offer educational and networking opportunities with hopes of creating a broader, well-informed community around digital currencies moving forward,” said Institutional Sales and Strategy head at Blockchain, Breanne Madigan.
The new Blockchain product which targets institutional investors improves in the momentum that has been seen in the past few months. According to research done by Willis Towers Watson, insurance funds, mutual funds, endowments and foundations, sovereign wealth funds and pension funds operate an estimated $131 trillion of the wealth in the world.
Some people are of the view that the entry of large investors in the cryptocurrency market could help in legitimizing cryptocurrencies as a whole.
“Even a small dollar amount is legitimizing. If that happens, every family office says, ‘Oh, Yale’s in. That gives us the excuse.’” Ari Paul, the current chief investment officer of BlockTower Capital, a cryptocurrency investment firm and a former University of Chicago portfolio manager told CNBC in April this year.