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An old adage is making the rounds once again in the crypto sphere: institutional investors are back.
BlackRock Inc.’s partnership with Coinbase Global Inc. to make it easier for institutional investors to manage and trade Bitcoin was followed by another announcement that the asset manager is offering its first-ever investment product directly in the token.
Meanwhile, hedge-fund firm Brevan Howard raised more than US$1 billion for a crypto fund.
Thus, the return of the narrative: big-money investors are besotted by the space and are finding ways to be involved.
And it’s all happening as crypto prices show some signs of recovery, with Bitcoin adding 20 percent over the past month and Ether advancing 80 percent.
Bitcoin’s rally “may be attributed to the recent optimistic headlines on continued institutional adoption of crypto,” wrote analysts at BlockFi in a note.
Another by Coinbase, citing the BlackRock news, said “major multinational firms are making moves amid the crypto downturn.”
Yet, retail investors, the lifeblood of the cryptosphere, have been more hesitant to jump back in.
Wounds from Bitcoin’s 70 percent plunge since its November highs of around US$69 000 are still fresh. — Bloomberg
Online Reporter