Value investors being ‘forced out of business’ by momentum trade, Citi strategist says
Traditional investors have become actively interested in cryptocurrencies
Institutional investors are ready to invest in bitcoin and ETH
XRP token is among the five most attractive cryptocurrencies for investment
Low security of exchanges discourages investors from investing in cryptocurrencies
Institutional investors are increasingly interested in investment in bitcoin after its recent fall and price decline. This is evidenced by the results of a study by the analytical company Acuiti.
Since the beginning of the year, over 100 new instruments have been created for institutional investors that allow trading cryptocurrencies. For example, special trading conditions for institutional investors are offered by such cryptocurrency exchanges as Bitmex, Huobi, Bakkt, Coinbase, Deribit and others..
In addition, according to research, institutional investors are willing to invest their assets in bitcoin..
57% of the polled investors voted for him. In their opinion, this cryptocurrency is capable of rapidly increasing its own value even after a huge fall..
A good example was the fall in the value of bitcoin to a minimum of $ 3,800 in March, as well as a rapid rise in the price to $ 6,800 just a few days after the crash..
The second most popular cryptocurrency among investors predictably turned out to be ETH. Over 29% of investors are ready to invest their money in this token. As the use of cryptocurrencies grows, new types of tokens. They can represent value or something intangible like voices. Two…
The XRP token was also among the popular coins. Despite being the eighth most popular digital asset, XRP / USD is ranked 5th in the ranking of the preferred cryptocurrency pair by institutional firms. Their three main considerations are liquidity, volatility, and arbitrage opportunities.
As the respondents themselves admitted, investing in cryptocurrencies can also be very risky. Firstly, the cryptocurrency market remains quite volatile and subject to sharp price fluctuations. But even this factor does not deter investors from investing in digital coins, like security.
The low level of asset protection and the possibility of exchange hacking is one of the main constraints for institutional investors. Every month, hacks of exchanges are recorded in the world, which are accompanied by partial or complete withdrawal of investors’ funds. Some sites are forced to close after hacker attacks.
Until the organizers of cryptocurrency exchange platforms settle security issues, there is no need to wait for a massive transition of institutional investors to cryptocurrencies.
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