Expert cryptocurrency investor Mike Novogratz said during a speech at Blockchain Week Korea that “a herd of institutional investors” is moving into the crypto space. His opinion is shared by other experts, like Ethereum co-founder Charles Hoskinson who says tens of trillions of dollars will be invested into crypto from institutional investors. If this is accurate, it could lead to the biggest crypto rally in history by far since the total crypto market cap is still below USD 300 billion as of this writing on 23 July 2018.
It is believed that proper infrastructure, like licensed and insured cryptocurrency custodians, a Bitcoin exchange traded fund (ETF), official Bitcoin price indices, Bitcoin futures, and mature cryptocurrency regulation will usher institutional investors into the crypto space. Before this infrastructure was set up, it was too risky for institutions to make serious crypto investments. Now, most of the necessary infrastructure is finally falling into place.
The Street interviewed Novogratz after the speech, when he said, “I think institutional investors are slowly coming to the realization that blockchain will be Internet or Web 3.0 and they’ll want to participate just like they want to participate in the Web. Their first way of participating is going to be through venture-capital funds. Many of them are already participating because they’ve invested in Sequoia or Polychain or Benchmark or many of the other VC funds that invest in this area. The second step for them will be buying the coins and/or the ICOs themselves, but many of them are participating in the ICOs already through their venture investments.”
He predicts that if any major companies like Google or Amazon issue their own cryptocurrency, they would see explosive price increases. Additionally, he is the biggest investor in EOS and says it is the first blockchain ideal for commercial applications but admits there are some reasonable centralization concerns.
Novogratz is in charge of Galaxy Digital, which has pledged to invest hundreds of millions of dollars into crypto startups, with USD 325 million set aside for EOS projects. Additionally, other institutional investment firms such as Andreessen Horowitz, Lightspeed Ventures, Benson Oak, Autonomous Partners, and Grayscale Investments are making large investments into crypto.
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