Ever since Bitcoin (BTC) began to post lower lows in early-2018, with air quickly escaping the seeming cryptocurrency bubble, investors who bought the top have clamored to stay afloat. This grasping for straws has rapidly taken the form of advocacy of products, services, and platforms that could revive interest in this space.
While much of discussion regarding the so-called “institutional herd” has originated from these zealous “HODLers,” some industry insiders have all but confirmed that Wall Street is ready to delve into this asset class.
Crypto To Be a Beneficiary Of Institutional Money Over 2019
In a recent interview with Bloomberg, Mike Novogratz, a passionate cryptocurrency advocate that has roots at Goldman Sachs and Fortress Investments, noted that it is only a matter of time before institutional-sourced greenbacks appear on crypto’s marketplaces.
Echoing comments he has made over recent months, the Galaxy Digital chief executive noted that the “architecture” that would entice institutions to make noticeable capital and effort allocations are starting to be put in place.
Case in point, Fidelity Investments, a world-renowned financial institution with over ten thousand clients in its institutional rolodex, recently revealed that it could launch its crypto custody offering by March. Novogratz explained that this service, along with products of similar caliber, will pave the way for “smart money” to make a foray.
This isn’t just hearsay. Citing his personal knowledge as the head of a crypto merchant bank, which has some of its operations focused on hosting bigwig customers, noted that 200 or 300 customers will be interested in allocating fiat into crypto once custody solutions see their launch.
“Over the next six to 12 months you are going to see institutions put a small
amountof their assets,” Novogratz explained, before optimistically quipping, “a small amount of institutional assets is a lot of money.”
Novogratz’s most recent quip comes after he took to Twitter to issue an optimistic comment in a hypeman-esque fashion. The preeminent industry insider noted that while institutions are evidently taking their time, lots of infrastructural work is being quietly completed under the hood.
Thus, he concluded that soon enough, the value of cryptocurrencies will begin a slow grind higher, and will eventually foray out of the Bitcoin crash-induced “winter.”
Bitcoin Will Become Digital Gold
In classic Novogratz fashion, the long-time industry insider, who purportedly invested some of Fortress’ assets in Bitcoin in 2013-2014, went on to express his optimism regarding the cryptocurrency’s cardinal value proposition.
Likening the cryptocurrency space to the periodic table of elements, Novogratz explained that there’s only one digital asset that can have the atomic number of 69. This asset is, of course, Bitcoin.
This statement comes after Lou Kerner, the founder partner at Crypto Oracle, told CNBC much of the same. As reported by Live Coin Watch previously, Kerner expressed that BTC will eventually surmount gold, presumably in terms of market capitalization, and replace it as the world’s foremost store of value.
The Crypto Oracle executive ‘s most recent comments came just three months after he explained that BTC is “functionally much much better [than gold],” so the asset could see a Cambrian period of price growth in due time.