By Bobby Cho, a new voice from US big finance, has added his weight to the increasing evidence that institutional investors are corning the newly-stabilized cryptocurrency market, while professionalism is occurring unanimously, across the board.
BTC PROFESSIONALIZATION ACCORDING TO BOBBY CHO
Bobby Cho, the global head of trading at Cumberland, the crypto division of trading and investment firm DRW Holdings, said that the market was “turning the corner” from its “Wild West” earlier years. This was while speaking to Bloomberg on 1 October.
There are perhaps more official investors who are immersing into the $220 billion virtual currency market, than people may expect.
Miners, whose computers are enabled to generate coins through the confirmation of transactions have also started many coin sales.
There have been discussions that there are multiple Wall Street firms that are preparing for possible bitcoin trading opportunities. In the second half of 2018, it was noted that entities such as hedge funds are the primary purchasers of coins. Hedge fund buyers have surpassed individuals with a high net-worth, as the primary purchaser of digital coins amounting to more than $100 000 through private transactions.
Cho informed the publication that “what that’s showing you is the professionalization that’s happening across the board in this space.”
Bitcoin (BTC) $6574.14 -0.08%, has been known to fluctuate a lot. However, BTC is presently less volatile than it has been previously. In addition to concerns surrounding the volatility of prices, there have been concerns around hacking vulnerabilities, minimal consumer protection and the anonymity which has the potential to enable money laundering. Furthermore, ICOs and crypto-assets were not included in the Finical Services Authority’s scope. Despite the current BTC stability, attitudes are still changing rapidly among those looking to enter the market on larger volumes.
Cho said that “one of the biggest criticisms of crypto by institutional investors has been the volatility. Over the last four to six months, the market has been trading in a very tight range, and that seems to be corresponding with traditional financial institutions becoming more comfortable diving into space.”
Financial sector experts were still uncertain about the short-term outlook for BTC as recently as July this year.
Alston & Bird’s Blake Estes, a Bitcoinist reported that for chief investment officers, there’s only downside risk in cryptocurrency. It would take a leap of faith with a new custodian with no brand recognition. That presents a real risk for them.
‘TIGHT RANGE MARKETING TRADING’ KICKSTARTS OBSERVER ENGAGEMENT
Simultaneously, however, not everyone is merely a passive observer. Even a brief spate of sideways movement is reassuring some parties. According to Cho: “Over the last four to six months, the market has been trading in a very tight range, and that seems to be corresponding with traditional financial institutions becoming more comfortable diving into space.”
The BTC and virtual currency world are undergoing significant changes which will continue into the upcoming months. Intercontinental Exchange, Morgan Stanley, and Goldman Sachs are now developing products which would all offer regulated investment options for a segment of big money which has hitherto faced hurdles to entry.
Further down the line, cryptocurrency commentators consider the appearance of the hotly-contested Bitcoin and Ether exchange-traded fund (ETF) to be sure, despite ultimately being a mixed blessing for cryptocurrency as a whole.
What do you think about Bobby Cho’s perspective on cryptocurrency? Do you think that professionalism is happening across the board space? Do you think that the market is “turning the corner” from its early “Wild West” years? Let us know in the comments below!
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