Institutionally Backed? 🤑

Institutionally Backed?

We’ve been talking a lot about crypto recently and there’s been so much news, so get ready for this because we have more! Now it’s a well-known fact that over the past few years Bitcoin and other cryptocurrencies have been largely backed by retail investors, meaning everyday folks like me and you, and generally ignored by bigger institutional investors, such as banks, credit unions, insurance companies, pension funds, Hedge Funds, you get the point … they have a lot of money and in turn, a lot of power to move any given investment. So why have institutional investors avoided cryptocurrency and will this change? A few reasons institutional investors have avoided crypto are crypto being too risky, being too small of a sector relative to others, and a lack of tangibility.

This reasoning was one year ago, but have times really changed? Well, crypto has seen a massive spike not only in its stock price but also its slow but true acceptance into the real world. With companies like PayPal, Tesla, and more adopting crypto as a legitimate means of payment, cryptos “lack of tangibility” relative to currencies in the status-quo may become less relevant. With Bitcoin seeing the potential in its real-life application, institutional investors may be stepping in. In fact, an analysis of the crypto market from Citi Bank reported that there had been a major change in bitcoin from “institutional investors as they search for higher returns and alternative assets.” All in all, though nothing is confirmed because the markets are unpredictable. That’s why Citi analysts concluded, “There are a host of risks and obstacles that stand in the way of Bitcoin progress. But weighing these potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point.”

Which way do you think Bitcoin will fall on this “tipping point”? And will institutional investors become more heavily involved with Bitcoin and other cryptocurrencies going into the future?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.