Bitcoin (BTC) has long been described as a movement to phase out institutions. But ironically, it is institutions that many cryptocurrency investors have claimed to rely on to boost Bitcoin to fresh all-time highs.
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Yet, as of now, institutions have seemingly yet to have made a large impact on the crypto markets. Industry upstart BlockFi, for instance, reported earlier this month that the metaphorical “crypto virus” has only “infected 1.3% of the total private fund population” as of 2019. This may be for good reasons.
Institutions Still Not in Bitcoin
CryptoOracle, a community-centric industry venture capital firm, recently held a conference call with four industry venture capitalists/investors: Matthew Welsh of Castle Island Ventures, Matthew Le Merle of Blockchain Coinvestors, Eli Mizroch of Silver Castle Digital Currency Investment Group, and Travis Kling of Ikigai Asset Management.
While these are investors from all over the world with presumably distinct theses, they all centered around similar ideas regarding institutional involvement in Bitcoin and cryptocurrency. Kerner, in a post mortem of the star-studded conference call, wrote:
“While all the speakers have drank the Kool-Aid, they were all measured in their responses, and aware of the challenges ahead. The consensus was that institutional investors are coming in scale, but we’re still 1+ years away.”
They attributed this idea to immaturity in “three key infrastructure categories”: qualified custody, regulated spot ventures and futures exchanges, and robust data providers at an institutional scale.
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