Bitcoin is one of the few assets that the population had the opportunity (or invest) in front of institutional investors in the Asset to. Normally, this is always exactly the other way. However, since the recent Bullrun, has created in the Public for the first time, a lot of attention for BTC, see a lot of experts, the institutionalization as a price driver of a possible next Bullruns.However, the opinions about how strong the institutionalisation is more advanced in Bitcoin already, and where they are located, are far apart. While Coinbase reported a few weeks ago that the Exchange each week, invested several hundred million dollars for institutional investors, shows the example of Bakkt that the interest is left to be desired. But why is that exactly?
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The Bitcoin market is just too small for institutions
In an Interview with “The Block” answered the in the Crypto area, estimated Tom Lee this very question. Lee is the Managing Partner and Head of Research at financial services provider “Fund is Global Advisors joined”. According to him, there are mainly 2 main reasons for the Faltering of the institutionalization of Bitcoin.First of all, Lee considers simply the market capitalization of Bitcoin as a Problem for institutional investors. This is, according to CoinMarketCap, currently at just under US $ 144 billion and is for investors who manage several hundreds of billions or trillions of dollars just to low.Tom Lee takes in his testimony in some other Asset classes, as an example, to set the market capitalization of Bitcoin in the right ratio. Gold, stocks and bonds, according to him a market capitalization of 9, 66 and 86 trillion dollars. While Bitcoin was “not even a half of one per cent of these Assets”. If institutional investors would decide to invest 1% of their managed assets in BTC, that would be “three times as much” as the total market capitalization of BTC currently.Trading on our brokers comparison-winning eToro. You are looking for a reliable and intuitive Broker to trade crypto-currencies, CFDs, shares, Forex, commodities and more? Then let yourself be in our eToro Test in 2019 all of the features explain, what possibilities are given to you here and where is here the Before – and disadvantages are . eToro Test 2019 read now.
Bitcoin regulation, and infrastructure problematic
As a further obstacles to institutional investors, Lee sees a lack of infrastructure around Bitcoin. Also regulatory aspects for Lee seem to fall under the definition of “infrastructure”. According to him, there are in the United States a lack of “regulatory protection”:
There is not enough legal and regulatory protection for Bitcoin in the United States, in order to prevent an arrangement of the White house, the BTC bans, so nothing today would prevent that Bitcoin will be banned in the United States.
This has the consequence that many investors (apart from financial risk) to see a large risk for your reputation if you go into a market like Bitcoin, providing little to no regulatory protection on the part of the legislature.Lee is someone who needs to know. He advises on Fund Global investors joined in their investment decisions, also in terms of Bitcoin. His statements are a possible explanation for the weak Start of Bakkt and it is to be hoped that the obstacles to reduce in the coming months and years for institutional investors. The only way the enormous buying power of this can give a boost to the Bitcoin price.
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