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The head of market insights at Genesis Trading stated that the growth of institutional investment in the crypto sector in the past 12 months was “surprising”. The executive added: “We see strong signs of acceleration next year.”
Strong signs of accelerating institutional investment growth next year
Noelle Acheson, head of market insights at Genesis Trading, shared with CNBC on Tuesday her outlook on the cryptocurrency market and investor expectations for 2022. she says:
The institutional growth in the past 12 months has been surprising. We see strong signs of acceleration next year.
Genesis Trading is a full-service digital currency prime broker. The company provides market participants with a fully integrated platform to trade, borrow, lend and custody digital assets. It is a wholly-owned subsidiary of Digital Currency Group (DCG), which is one of the largest private investors in blockchain and digital asset companies.
Acheson explained that growth in institutional investment will come from companies that directly invest in tokens and crypto ecosystems. She added that given the “volume of funds seeking returns”, investment in crypto market infrastructure companies may accelerate.
She explained that institutional investors are expanding their interest from Bitcoin and Ethereum to smaller, riskier cryptocurrencies to diversify their portfolios.
“One of the major developments in the past 12 months has been the migration of the Bitcoin mining industry from China. Many of them have flowed to the United States… For the Bitcoin market, it is more important to directly allow Bitcoin miners to obtain financing. “Acheson further thought.
Other indicators of institutional adoption of cryptocurrency include a survey by Nickel Digital Asset Management, which showed that 82% of institutional investors and wealth managers plan Increase their cryptocurrency exposure From now to 2023.Institutional investors are warming Although expecting encryption Major correction In the crypto market.
October, Global Investment Bank JPMorgan Said, “Institutional investors seem to be returning to Bitcoin, perhaps seeing it as a better inflation hedging tool than gold.” Due to strong demand, more and more large banks are providing crypto products and services to their customers.For example, Bank of America stated in October that due to Demand From institutional clients.
What do you think of Acheson’s comments? Please let us know in the comments section below.
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