Genesis Trading Sees ‘Strong Signs’ of Institutional Crypto Investment Growth Accelerating Next Year
Genesis Trading’s head of market insights says that the institutional investment growth in the crypto space over the last 12 months “has been astonishing.” The executive added: “We’re seeing strong signs of that accelera...
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Genesis Trading’s head of market insights says that the institutional investment growth in the crypto space over the last 12 months “has been astonishing.” The executive added: “We’re seeing strong signs of that accelerating over the next year.”
Strong Signs of Institutional Investment Growth Accelerating Next Year
Noelle Acheson, head of market insights at Genesis Trading, shared her outlook for the cryptocurrency market and what investors should expect heading into 2022 with CNBC Tuesday. She said:
The institutional growth over the last 12 months has been astonishing. We’re seeing strong signs of that accelerating over the next year.
Genesis Trading is a full-service digital currency prime brokerage. The firm offers market participants a fully integrated platform to trade, borrow, lend, and custody digital assets. It is a wholly-owned subsidiary of Digital Currency Group (DCG), one of the largest private investors in blockchain and digital asset companies.
Acheson explained that the institutional investment growth will come from both investments directly in tokens and companies in the crypto ecosystem. She added that investments in crypto market infrastructure companies are likely to accelerate given “the amount of money out there looking for returns.”
She explained that institutional investors are expanding their interest beyond bitcoin and ether into smaller and risker cryptocurrencies to diversify their portfolios.
“One of the big developments over the past 12 months was the migration of bitcoin mining from China. A lot of that went to the United States … Even more significantly for the bitcoin market directly is the access this gives bitcoin miners to financing,” Acheson further opined.
Other indicators that institutional adoption of cryptocurrency is growing include a survey by Nickel Digital Asset Management showing that 82% of institutional investors and wealth managers are planning to increase their cryptocurrency exposure between now and 2023. Institutional investors are warming up to crypto despite expecting a major correction in the crypto market.
In October, global investment bank JPMorgan said that “institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold.” A growing number of large banks are offering crypto products and services to their clients due to high demand. US Bank, for example, said in October that it is launching crypto custody services due to strong demand from institutional clients.
What do you think about Acheson’s comments? Let us know in the comments section below.
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