Institutional Investors Ensure Early Christmas for the Crypto World

Christmas came early for the crypto world as Santa Claus came with two gifts. The first gift he gave was a significant investment in major cryptocurrency exchange company, Binance by the Singaporean government. The second and more interesting gift is that new Bitcoin futures will be available in the market as of December this year.

Vertex Ventures, which is the venture capital arm of the Singaporean government-owned investment company Temasek Holdings Pte, has invested in Binance. Although the specific terms are shrouded in secrecy, it is safe to assume that it is significant since it is expected to further  Binance’s plans to enable their users’ trade crypto for the Singaporean dollar and vice versa. Actually, a chapter of the company was opened in Uganda, where fiats to crypto transactions were recently tested.

By December 12th 2018, Bitcoin future will begin to be cleared by the parent company of the New York Stock Exchange which is none other than the Intercontinental Exchange (ICE) on its crypto platform Bakkt.

Based on the information from a document issued by the ICE, a “digital asset warehouse” jointly created by Bakkt and ICE will house the “physical” Bitcoin that backs the futures contract.

Cryptocurrency reporter and analyst, Joseph Young is of the opinion that Bakkt’s emergence in the market could galvanize large numbers of traders into investing in it. He also believes that the US Securities and Exchange Commission (SEC) might even reconsider their position on the crypto market.

Changpeng Zhao, the CEO of Binance, puts the significance of institutional investors’ support for crypto into perspective with a question he asked on Twitter, “What happens when a fund like Fidelity allocates a mere 5 per cent of their portfolio to crypto? Have you calculated how much that is?”

Zhao sheds more light with this “simple” tweet on October 21st which is suspected to have been deleted:

“Right, that little 5% is more than doubling (almost triple) the entire crypto market cap. And some people are still worried about… “

Investments in digital assets appear to be the trend in the market. Last October, it was reported that Fidelity Investments, a US based company and the fourth largest asset manager with $7.2 trillion in assets under management, launched a new company that serves financial institutions with interests in the trading and storage of digital assets.


Also published on Medium.

Share: