The cryptocurrency industry needs an influx of fresh capital. Institutional investors remain a prime group to attract to Bitcoin and altcoins. Various major cryptocurrency trading firms are now bundling their forces to offer more crypto exposure to big Wall Street investors.
Institutional Money is More Than Welcome
Current cryptocurrency prices does not excite many people. All currencies have lost a lot of value since early 2018. Recovering those losses can only happen if fresh capital is injected into the various markets. So far, consumers have not shown much interest in offering financial aid. New options need to be explored to make interesting things happen in the cryptocurrency industry.
Institutional investors are a key group in this regard. They usually manage millions, if not billions, of dollars in various assets. Diversification is key in the financial sector at all times. Exposing a portion of such institutional wealth to cryptocurrency can be a smart bet. Especially with these lower prices, the potential for profits has only increased over time.
Various crypto trading firms aim to make this shift happen. TrueDigital is introducing two new price indices for Bitcoin and Ether. Those rates can then be used for derivative products accessible by mainstream investors. Exchange-traded funds based on these indices may also come to market. Tapping into new potential exposure use cases is direly needed at this stage.
Pushing Cryptocurrency Excitement to the Next Level
TrueDigital is not alone in its quest to attract institutional money. CME Group is looking to introduce established Bitcoin futures exchanges. That in itself can open up a whole new market for cryptocurrency in general. So far, Bitcoin futures have not made the impact some people had hoped for initially. Institutional investors are not warming up to this trading vehicle just yet.
The move by TrueDigital is widely considered to be a solid choice. By sourcing price data from OTC trading, additional transparency can be offered. More importantly. crypto exchanges often provide skewed market data. Institutional investors want the correct real-time information at all times. OTC market data has a higher “trust factor” compared to exchanges with their immature infrastructure.
Any positive development will benefit the cryptocurrency industry as a whole. Attracting institutional interest is the next topic on the agenda. How that will be achieved, exactly, is still somewhat unclear. These new indices may pave the way for broader adoption in the coming months and years. It may also have an adverse effect and not make any impact whatsoever.
Do you think these new indices will lure big institutional money into cryptocurrency? Let us know in the comments below.
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