Professional and Institutional money are flowing in. What does that mean for us?

[Analyst101]

I posted this on the serious discussion, but was curious what other users think of this issue.

Many of us are probably aware of big institutions and corporations moving into blockchain and crypto. For example, most of big exchanges are largely owned by large corporations. Korbit is largely owned by Nexon. Upbit is owned by Kakao. In addition, Circle, which is funded from investors like Goldman Sachs bought Poloniex. And recently, Korean investors bought Bitstamp for 400 million dollars.

We also see many professional funds especially venture funds investing in cryptomarket and even mining operations. And ironically, we are also seeing famous fund managers moving into crypto. Even George Soros, who criticized Bitcoin as “nothing but bubble” is planning to build a cryptofund.

Ok, so that’s great. But what does that mean for us?

1.   The cryptomarket will be more mature and professional
Just like how the market for stocks and commodities like oil became more established and professional after they became “mainstream.” The cryptomarket is likely to go through a transition where we will have a lot of professionals in this field. This means that many of us who are knowledgeable about cryptomarket will be in high demand especially if we already have other valuable skills such as coding, marketing, and analyzing.

2.   The prime information will be a key to success
Right now, the marketcap for cryptos are small. However, once we have billions of dollars’ worth of crypto trading, the prime information such as listing and technological breakthrough will be very valuable. Therefore, in order to get these information, the big players would be willing to spend a lot of money. Of course, we will also see regulators trying to crack down on them. However, just like stocks, it would be impossible to stop all of them. This also means many institutions are going to want more information than just simple technical analysis and looking at charts. Like Bloomberg terminal, they would want to have all sorts of information.

3.   The price of leading cryptos might increase.
The reason why I point out “leading cryptos” instead of “all cryptos” is because right now most of investment and altcoins can be purchased via few cryptos such as Bitcoin, Ether, and NEO. So these major coins are likely to get major boost from the capital inflow. Of course, several smaller projects will get major boosts as well but it’s likely to be more selective. It’s important to remember that most of big trades happen via dark pool because usually exchanges can not handle them at once. In theory, a demand for a billion dollar worth of Bitcoin should spike up the price, but it might not happen right away if they trade via darkpool and OTC rather than exchanges

4.   Arbitrages will be smaller
If you use decentralized exchanges like ForkDelta or IDEX, you are probably aware of large spreads and large price differences between exchanges. However, as more capital flows in, arbitrages between exchanges is likely to get smaller because in theory, the market becomes more efficient as it becomes more liquid. Of course, Kimchi Premium is likely to continue because Korean exchanges require extra hurdles (such as you have a Korean nationality to use it)

[Haley craft]

I think it's a good thing that more and more financial institutions are starting to pay attention to cryptocurrency markets.
That would allow more people to invest in cryptocurrencies.

[ManaMan]

It means we are still early in this game. Interesting thing is that you hear all of these news such as even yahoo looking to lunch their exchange in Japan, think I have read that somewhere and yet many people still put crypto in question. It means there is still place for money to be made and it can provide good opportunity to start your business around crypto if you haven't yet. As time passes by you will gain reputation and hopefully can turn this for the best.

[bct9t]

The post is written beautifully and precisely. I think its high time that more institutions look into the crypto market and this will make more and more people to invest in the crypto market.

[KingScorpio]

I posted this on the serious discussion, but was curious what other users think of this issue.

Many of us are probably aware of big institutions and corporations moving into blockchain and crypto. For example, most of big exchanges are largely owned by large corporations. Korbit is largely owned by Nexon. Upbit is owned by Kakao. In addition, Circle, which is funded from investors like Goldman Sachsm bought Poloniex. And recently, Korean investors bought Bitstamp for 400 million dollars.

We also see many professional funds especially venture funds investing in cryptomarket and even mining operations. And ironically, we are also seeing famous fund managers moving into crypto. Even George Soros, who criticized Bitcoin as “nothing but bubble” is planning to build a cryptofund.

Ok, so that’s great. But what does that mean for us?

1.   The cryptomarket will be more mature and professional
Just like how the market for stocks and commodities like oil became more established and professional after they became “mainstream.” The cryptomarket is likely to go through a transition where we will have a lot of professionals in this field. This means that many of us who are knowledgeable about cryptomarket will be in high demand especially if we already have other valuable skills such as coding, marketing, and analyzing.

2.   The prime information will be a key to success
Right now, the marketcap for cryptos are small. However, once we have billions of dollars’ worth of crypto trading, the prime information such as listing and technological breakthrough will be very valuable. Therefore, in order to get these information, the big players would be willing to spend a lot of money. Of course, we will also see regulators trying to crack down on them but just like stocks, it would be impossible to stop all of them. This also means many institutions are going to want more information than just simple technical analysis and looking at charts. Like Bloomberg terminal, they would want to have all sorts of information.

3.   The price of leading cryptos might increase.
The reason why I point out “leading cryptos” instead of “all cryptos” is because right now most of investment and altcoins can be purchased via few cryptos such as Bitcoin, Ether, and NEO. So these major coins are likely to get major boost from the capital inflow. Of course, several smaller projects will get major boosts as well but it’s likely to be more selective. It’s important to remember that most of big trades happen via dark pool because usually exchanges can not handle them at once. In theory, a demand for a billion dollar worth of Bitcoin should spike up the price, but it might not happen right away if they trade via darkpool and OTC rather than exchanges

4.   Arbitrages will be smaller
If you use decentralized exchanges like ForkDelta or IDEX, you are probably aware of large spreads and large price differences between exchanges. However, as more capital flows in, arbitrages between exchanges is likely to get smaller because in theory, the market becomes more efficient as it becomes more liquid. Of course, Kimchi Premium is likely to continue because Korean exchanges require extra hurdles (such as you have a Korean nationality to use it)

many of those "institutions" woll lose all their credibiliy because they will look like ordinary gamblers to the public.

[jonloner011]

i think it's great man. Many more financial institutions are starting to pay attention to cryptocurrency markets. this is what we want for the Crypto BOOM. Can’t wait anymore haha, we have to be patiente. this whole this will bright more people towards cryptocurrencies.

[cryptohunter]

some cryptos have a real use case and area already almost completely developed.

those are the cryptos that i would be looking at if i was a professional investment firm.

the top cryptos by MC mean nothing really.

[davinchi]

It means we are still early in this game. Interesting thing is that you hear all of these news such as even yahoo looking to lunch their exchange in Japan, think I have read that somewhere and yet many people still put crypto in question. It means there is still place for money to be made and it can provide good opportunity to start your business around crypto if you haven't yet. As time passes by you will gain reputation and hopefully can turn this for the best.

Very early and we are just about to enter the days of new era where things would change a whole lot in the market. I really pity those who have panicked out of the market and the laggards, because as it is, once you start seeing the entry of professionals and top institutions in the market, a whole lot of things change but most especially those who have been early in the game are about to enter the new era of wealth. One reason we keep saying HODL and keep loading up.

I really see that as the way forward honestly, and it is something we would not have been able to avoid anyway considering how the institutions always perceive opportunities and know when and how to take hold of such opportunity. The maturity and professionalism in the market is something we will not be able to rule out and for me, I see it that we are gradually moving already into the era of another higher level of future stock market.

[darewaller]

I think it's a good thing that more and more financial institutions are starting to pay attention to cryptocurrency markets.
That would allow more people to invest in cryptocurrencies.

It is really a good thing, most especially for long term holders and those who have seen the light even before now. The prices of most coins or tokens with prospect is definitely going to be increasing a whole lot as the case may be as the top institutions keep stepping in and with that we will get to see new waves in the market and then a better market for trading compared to what we have always had. I see this as a good one for the future and definitely the start of the future. Simply, when more new people are joining into crypto kingdom then we can expect some big fire-works to happen. So, I am exciting awaiting those to happen again.

[Xioma]

I think it's a good thing that more and more financial institutions are starting to pay attention to cryptocurrency markets.
That would allow more people to invest in cryptocurrencies.

Right, more people getting involved in crypto and creating further demand is always good.

[greatk]

Institutional money flowing into cryptocurrency imply they will come with their professional expertise. However, i'm expecting some market manipulation from them; some flash pump and dump in order to see if they can dominate and direct the path of the market.

[sorehammer]

I posted this on the serious discussion, but was curious what other users think of this issue.

Many of us are probably aware of big institutions and corporations moving into blockchain and crypto. For example, most of big exchanges are largely owned by large corporations. Korbit is largely owned by Nexon. Upbit is owned by Kakao. In addition, Circle, which is funded from investors like Goldman Sachs bought Poloniex. And recently, Korean investors bought Bitstamp for 400 million dollars.

We also see many professional funds especially venture funds investing in cryptomarket and even mining operations. And ironically, we are also seeing famous fund managers moving into crypto. Even George Soros, who criticized Bitcoin as “nothing but bubble” is planning to build a cryptofund.

Ok, so that’s great. But what does that mean for us?

1.   The cryptomarket will be more mature and professional
Just like how the market for stocks and commodities like oil became more established and professional after they became “mainstream.” The cryptomarket is likely to go through a transition where we will have a lot of professionals in this field. This means that many of us who are knowledgeable about cryptomarket will be in high demand especially if we already have other valuable skills such as coding, marketing, and analyzing.

2.   The prime information will be a key to success
Right now, the marketcap for cryptos are small. However, once we have billions of dollars’ worth of crypto trading, the prime information such as listing and technological breakthrough will be very valuable. Therefore, in order to get these information, the big players would be willing to spend a lot of money. Of course, we will also see regulators trying to crack down on them. However, just like stocks, it would be impossible to stop all of them. This also means many institutions are going to want more information than just simple technical analysis and looking at charts. Like Bloomberg terminal, they would want to have all sorts of information.

3.   The price of leading cryptos might increase.
The reason why I point out “leading cryptos” instead of “all cryptos” is because right now most of investment and altcoins can be purchased via few cryptos such as Bitcoin, Ether, and NEO. So these major coins are likely to get major boost from the capital inflow. Of course, several smaller projects will get major boosts as well but it’s likely to be more selective. It’s important to remember that most of big trades happen via dark pool because usually exchanges can not handle them at once. In theory, a demand for a billion dollar worth of Bitcoin should spike up the price, but it might not happen right away if they trade via darkpool and OTC rather than exchanges

4.   Arbitrages will be smaller
If you use decentralized exchanges like ForkDelta or IDEX, you are probably aware of large spreads and large price differences between exchanges. However, as more capital flows in, arbitrages between exchanges is likely to get smaller because in theory, the market becomes more efficient as it becomes more liquid. Of course, Kimchi Premium is likely to continue because Korean exchanges require extra hurdles (such as you have a Korean nationality to use it)

This is a very good sign for crypto world when more and more institutions would invest in crypto then prices will reach to moon,demand will increase supply short and prices will be skyrocketed.it's mean crypto is adopted by more and more people.in this way you can imagine that where BTC price would reach and those who are holding investments how much rich they would be.

[ckcharlie]

This can only be a good thing for us. a rise in the market, larger adoption in society.

[LeroyBro]

I think it's a good thing for crypto.

As more people get involved, the supply and demand change accordingly.

[arjuna BTC]

and this will be good for this cryptocurrency users like us
billion money will go to crypto markets, wich means will increase the market cap of cryptocurrency 

[ricardobs]

many of those "institutions" woll lose all their credibiliy because they will look like ordinary gamblers to the public.

Whenever the bigger players are entering a market, we should always know that things are about to get bigger and when the picture is about to get done, they are usually see it and that makes the market to seem even more established.
It is one of the reasons why I believe everyone should have hope and count the present price as a way to accumulate more for the future, but I guess those who are not seeing the bigger picture will find that hard to get.

[Duzenn]

I think it will be very difficult for the market to a big rise and a big fall sharply, and the market will gradually stabilize.
But it is clearly a good thing that more and more financial institutions are investment about the cryptocurrency market.

[KingScorpio]

I posted this on the serious discussion, but was curious what other users think of this issue.

Many of us are probably aware of big institutions and corporations moving into blockchain and crypto. For example, most of big exchanges are largely owned by large corporations. Korbit is largely owned by Nexon. Upbit is owned by Kakao. In addition, Circle, which is funded from investors like Goldman Sachs bought Poloniex. And recently, Korean investors bought Bitstamp for 400 million dollars.

We also see many professional funds especially venture funds investing in cryptomarket and even mining operations. And ironically, we are also seeing famous fund managers moving into crypto. Even George Soros, who criticized Bitcoin as “nothing but bubble” is planning to build a cryptofund.

Ok, so that’s great. But what does that mean for us?

1.   The cryptomarket will be more mature and professional
Just like how the market for stocks and commodities like oil became more established and professional after they became “mainstream.” The cryptomarket is likely to go through a transition where we will have a lot of professionals in this field. This means that many of us who are knowledgeable about cryptomarket will be in high demand especially if we already have other valuable skills such as coding, marketing, and analyzing.

2.   The prime information will be a key to success
Right now, the marketcap for cryptos are small. However, once we have billions of dollars’ worth of crypto trading, the prime information such as listing and technological breakthrough will be very valuable. Therefore, in order to get these information, the big players would be willing to spend a lot of money. Of course, we will also see regulators trying to crack down on them. However, just like stocks, it would be impossible to stop all of them. This also means many institutions are going to want more information than just simple technical analysis and looking at charts. Like Bloomberg terminal, they would want to have all sorts of information.

3.   The price of leading cryptos might increase.
The reason why I point out “leading cryptos” instead of “all cryptos” is because right now most of investment and altcoins can be purchased via few cryptos such as Bitcoin, Ether, and NEO. So these major coins are likely to get major boost from the capital inflow. Of course, several smaller projects will get major boosts as well but it’s likely to be more selective. It’s important to remember that most of big trades happen via dark pool because usually exchanges can not handle them at once. In theory, a demand for a billion dollar worth of Bitcoin should spike up the price, but it might not happen right away if they trade via darkpool and OTC rather than exchanges

4.   Arbitrages will be smaller
If you use decentralized exchanges like ForkDelta or IDEX, you are probably aware of large spreads and large price differences between exchanges. However, as more capital flows in, arbitrages between exchanges is likely to get smaller because in theory, the market becomes more efficient as it becomes more liquid. Of course, Kimchi Premium is likely to continue because Korean exchanges require extra hurdles (such as you have a Korean nationality to use it)

ever heard of licensed outsourced fintech?

thats a highly corrupt system, to benefit the rich and powerful.

a friend of me works in a company whos boss has get himself a privat bank in order to print money and pay trapped salary slaves to build him more income sources /enrich himself,

these "proffessionals" are highly broken

[Herbert2020]

you are making a wrong conclusion based on irrelevant data. you say "Professional and Institutional money are flowing in" but you don't say "in where". and "where" according to your first paragraph is services such as exchanges. that is not related to the 4 conclusions that you made. it would be related if this money was going in the cryptocurrencies themselves not the services that earn money through them!

#1 is only true if these services were regulated and trusted. but we all know none of them, specially exchanges, are NOT trustworthy.

#2 unfortunately so far this only meant more money and more greedy people making useless projects crowding everywhere and pushing good projects down to the point where they are even ignored and overlooked while shitcoins are pumped and stay on top of the lists and people call them "top10"

#3 that is the problem! the leading altcoins are worse than those ignored projects that i said above! just because they have a huge supply that keeps their market cap in a bubble and keeps them on top of a chart doesn't make them "leading"

#4 another flaw in your logic is visible here. you said the capital is going in services then you are making the conclusion that the capital is going in altcoins. you are contradicting yourself!

[iconoclast]

The main thing that has kept institutional money on the sidelines is regulatory uncertainty. Nobody wants to deploy large amounts of capital if it could end up being lost from running foul of the regulators. As the regulatory environment becomes more clear we can expect more investment in cryptocurrencies.