Institutional investors are largely responsible for the crypto price surge currently being experienced according to a key coinbase official.
The head of institutional coverage at Coinbase, Brett Tejpaul, attributed the soaring prices to institutional investors in a Heidrick & Struggles podcast. The Coinbase official also stated that his firm was receiving more institutional investor attention than ever before in his time there. Investor interest and purchases have tripled according to Tejpaul;
“We’ve had an explosion of activity. I joined in April of this year. At that time, our institutional assets under custody were $6 billion. Today, we stand at over $20 billion, so more than a three-time increase. We’re now measuring the fresh capital coming into crypto principally being allocated to Bitcoin in the billions and so week after week after week we’ve had an explosion of incoming capital,”
He also explained the impact of big market institutions like PayPal, banks and major hedge funds.
“For people sitting on the sideline that are now looking at the major banks, the major accounting firms, major hedge funds, major endowments, and now PayPal is getting into space. It’s really unleashed the second wave of institutional adoption.”
As interest from institutions kike PayPal grows, so is interest from individual investors looking for a safe place to park their capital during these harsh financial times. A study by the DeVere Group, one of the world’s most notable independent financial advisory firms, 73% percent of the poll participants are invested or are preparing to invest in digital assets, such as Ethereum, XRP, and Bitcoin in the next 3 years.
As institutional interest continues to grow, big price predictions have been made by famous crypto enthusiasts. The likes of Mike Novogratz of Galaxy Digital and Tyler Winklevoss of Gemini Capital see a crypto boom as we edge closer to 2021.
Image Courtesy of Pexels