Nikolay Storonsky, the founder of the banking application Revolut, recently returned to lower trading volumes in Bitcoin markets (Bitcoin Cash ABC Wallet). In particular, he said the demand from institutional investors was still far too weak to stimulate activity around the first digital currency. In recent months, many media have echoed the imminent influx into the crypto sphere of many institutional investors – savings collectors, such as pension funds or insurance companies. Last October, Bloomberg quoted as Bobby Cho , the leader of trading investment company crypto- Cumberland, who said that an increasing number of these entities were flocking to the crypto-markets.
Over the last four to six months, prices have moved in a narrow range, and this seems to coincide with the change in attitudes of some traditional financial institutions, who are more comfortable with the idea of interacting with this. ecosystem,he said then.
Mike Novogratz fervent support of Bitcoin and head of the investment company Galaxy Digital , stated a few weeks ago that a feeling of FOMO – the fear of missing out on a lucrative investment – would probably soon s’ seize many companies from the world of investment . He expected this capital to flow to crypto markets by July 2019 – which he believes would allow them to regain their record valuation of last January, more than 800 billion dollars.
This FOMO has not yet manifested, we will soon reach a tipping point had he said, adding that pension funds should be the first large entities to capitalize on the crypto-sphere.
More recently, the banking giant Morgan Stanley released a report indicating a growing interest from institutional investors for this ecosystem.
Institutional investors: still very weak demand
Some observers believe that if the institutional actors have not yet entered the crypto-sphere, it is primarily because of a lack of regulatory clarity around digital assets.
But for the media Bloomberg , it rather reflect a poor palatability of these organizations for crypto-currencies:
The biggest drag on the arrival of Wall Street behemoths in the crypto sphere comes from their customers, rather than regulators, says the website of the US financial group.
In his article, he cites Nikolay Storonsky , the founder of the British company FinTech Revolut . Valued at $ 1.7 billion, this company offers an application that offers its users a range of banking services, and that allows them for some months to buy Bitcoin, Ether, Litecoin, Bitcoin Cash ABC Wallet and XRP .
In the Web Summit 2018 held last week in Lisbon, the young entrepreneur said that institutional Wall Street giants did not show, for now, no sign of interest in crypto-currencies . One thing that could complicate business task such that ICE or Fidelity , which intend to propose shortly to institutional participants in the financial products backed by digital assets.
Unless big institutional and investment funders are turning massively into the crypto sphere, I do not think banks will go that way, because their job is to make money from their money. customers, he said. So far, there is no sign of interest from large institutional investors.
A view shared by Larry Fink , the CEO of the juggernaut of the asset management BlackRock . He had recently said that his company’s customers were not interested in cryptocurrencies.
And put a layer last week, in an interview given to CNBC . Mr. Fink added that his company would not launch an index fund ( ETF ) backed by the crypto-currencies before the ecosystem becomes legitimate. However, he said that BlackRock did not give up definitively to offer investment products related to digital assets. At the same time, a growing number of financial institutions, some of which were hitherto hostile to cryptocurrencies, have decided to turn to them. It may well include Morgan Stanley , Citigroup , Goldman Sachs , or ICE , the company that manages the New York Stock Exchange.
But despite these positive ecosystem initiatives, Storonsky is keen to remain cautious. He has reminded that trading volumes Bitcoin treated Revolut were 5 times lower than in December 2017.
For the entrepreneur, if a recovery were to occur in the coming months, the big banks should not be the first to benefit.