A new class of institutional investors is growing thanks to such financial institutions like Fidelity, stimulates the bullish rally of bitcoin, we are seeing this year. This is according to the company’s report on asset management Coinshares. Although, according to the report, the share of small investment in bitcoin is declining, the study authors believe that the era of prosperity leading cryptocurrency.
Coinshares analyzed market trends in the period from January to June 2019, and noted significant differences between the market rally of 2017 and the current one. The authors write:
“Striking that the four factors that took place during the bullish rally in 2017, will not affect the current growth of interest from virtually all media, the growing number of bitcoin search queries in Google, the growing number of tweets on bitcoin, as well as the parallel growth of the bitcoin rally altcoins”.
At the same time, the report’s authors say the long-awaited influx of “institutional money.” In particular, they point to the example of the firm’s asset management Fidelity, which this year expressed its intention to launch bitcoin Depository institutional level. The authors also note the growing number of other companies that apply to the cryptocurrency, including Microsoft, Starbucks and Intercontinental Exchange, are jointly launching a project Bakkt.
Finally, they point to Facebook, which plans to launch digital currency Libra. Despite the fact that the project has caused obvious discontent of many legislators and financiers around the world, experts Coinshares think it is promising. They write:
“Although Libra is centralized, it is led by the trust, it is not free from censorship, the number of produced tokens is not limited, and generally, by and large, this is not a cryptocurrency (although the exact definition of cryptocurrency does not exist), however, Libra – potentially able to benefit the inhabitants of the planet who lack access to banking services and online shopping, for example.”
At the same time, the authors of the report warn that the influx of “institutional money” saturating the market may soon dry up. This year the uncomfortable questions were raised about the situation with stableking Tether, which uses the “whales” who do not want to use the us dollar. Last month, the online Decrypt said that Tether massively buy large platform of OTC trading. Banks and pension funds that meet the definition of “institutional investor,” will hardly want to enter the stock market via Tether. Rather, they will give preference to regulated exchanges, such as Gemini.
The report Coinshares also evaluated the two largest after bitcoin, the cryptocurrency – Ethereum and XRP. Although the authors note that “internal disagreements” continue to ravage the community of developers of Ethereum, they hope the long awaited launch of Ethereum 2.0. (Serenity).
As for XRP, “demonstrated in the first quarter of this year, the worst results,” the report’s authors are not so optimistic because its six percent growth this year pales in comparison to 188% of bitcoin, and 281% of litecoin. Even a positive evaluation of the cryptocurrency on the part of legislators, such as the head of the IMF, Christine Lagarde, gives authors some skepticism in the sense that they do not consider the explicit evaluation of (potential) growth factor XRP. The experts write: “it is Not clear whether they belong to XRP as a digital asset to a company Ripple to RippleNet, or all this together.”