Why people are hype when they hear the words "institutional investment"?

[Finestream]

I just notice that the words "institutional investment" is very huge in crypto.

can you tell what is the expectation when institutional money is invested?
Do they bring the progress of adoption in the crypto space? or they are just like the whales who buy cheap and sell high for a profit?

I think adoption would result in regular use, but if they'll buy for investment purposes only, that's not "adoption".

[Tytanowy Janusz]

"Fidelity Investments Inc., commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.9 trillion in assets under management"
https://en.wikipedia.org/wiki/Fidelity_Investments

4.9 trillion $.

https://www.fidelitydigitalassets.com/bin-public/060_www_fidelity_com/documents/FDAS/bitcoin-alternative-investment.pdf

Paper made by Fidelity that suggest that every well-balanced/diversified portfolio should have at least 5% invested in BTC. If they will apply this to their 4.9 trillion$ wallet ... its 245 billion $ invested in BTC. That's more than 50 times more than mistrostrategy.Thats 30% of btc supply! Maybe 50% of existing, not lost supply. Thats the amount of money we are talking about. Fidelity needs to buy 50% of BTC supply just to "diversify their porfolio" and thats just 1 big institutional investor. There are many others.

And when you have 4.9 trillion $ in assets ... you have long tentacles in the governments of many countries to help push addition and proper regulations.

[Natalim]

Very well said @Tytanowy Janusz, institutional investment also is a sign of confidence, this big company would not just invest without evaluating the future of bitcoin and crypto as a whole, so with that confidence, the crypto market will be attractive to potential investors and more money will be flowing in.

Imagine, if they keep investing and hold it, the supply will reduce, hence the price will rise, that's the simple effect of institutional investment.

[Tytanowy Janusz]

Very well said @Tytanowy Janusz, institutional investment also is a sign of confidence, this big company would not just invest without evaluating the future of bitcoin and crypto as a whole, so with that confidence, the crypto market will be attractive to potential investors and more money will be flowing in.

Imagine, if they keep investing and hold it, the supply will reduce, hence the price will rise, that's the simple effect of institutional investment.

And 5% of wallet of huge investment found is like an anchor for price for both directions which helps adoption (no volatility FUD). If price doubles this 5% change to 10% and and found is selling because its target is to have 5% invested in BTC. When price dumps this 5% drops to 3% and they buy to reach 5% target. So price stabilize a lot after huge players comes in.

Price stabilization with big volumes = more pro market makers = even more stable price.

[mk4]

Basically the expectation is that huge amounts of money is going into the cryptocurrency space. Sure institutional investors going in is good in terms of price increase and by giving more legitimacy to the industry, but mostly the people who get a bit too excited are those who want their bags to pump in a short timespan. In which, we definitely don't want huge price spikes. We'd rather see it being a slow and steady increase as to make it more sustainable.

[romero121]

Institutional investments will be in millions. This will give more confidence to the common man. Same time these institutional investments have more control over the market. Based on the statement from the Fidelity it is clear to see large scale firms are more into acquiring of majority of the bitcoin. This will make governments to come up with regulations, but the market turns to be a controlled one than an independent market as now.

[Lucius]

Institutional investments will be in millions.

It would be time to learn the difference between a million and a billion, because there is a big difference between someone investing $250 million which is petty cash in a market worth more than $500 billion. On the other hand, $250 billion would make a total boom - I dare not even speculate how much the price of BTC would jump.


While some are looking forward to institutional money, one should know that they will not invest in Bitcoin because they think it is something that can change the world - they want to profit. The price effect is inevitable with their investments, but we also know what will happen when one of them dumps on the market hard.

[zanezane]

It's just me but I think the reason for the hype behind this is that it's coupled with big money since institutions that are mentioned are corporate giants and I think it's a no brainer that they are going to pour in large amounts of money.

[electronicash]

they are like investors coming to buy BTC they are pouring their money to bet for Bitcoin. that means the demand for BTC increased again.

we accused elon of dumping when the price dips months ago. and just like institutions they also dump, you can say they are also whales after all they want to profit from this market.

[crwth]

In addition to what others have already mentioned above, you can think about it this way. Institutional investors have more money than regular or retail investors like us. If more supply comes into play within this crypto space, more value will increase; hence the price will rise. Isn't that what we all want? Knowing that we all are here?

If they are willing to risk their capital to it, isn't it already adopted? If you know someone who just HODL's, what is the difference between them and the institutional investors?

[Kong Hey Pakboy]

they are like investors coming to buy BTC they are pouring their money to bet for Bitcoin. that means the demand for BTC increased again.

we accused elon of dumping when the price dips months ago. and just like institutions they also dump, you can say they are also whales after all they want to profit from this market.

I think that this is the only reason that someone is hyped up when they see or hear of institutional investors. I mean it's the only thing that these "institutional investors" bring in the market, huge amount of money to inject and stimulate a growth that will increase the hype of the market further thus making more money.

[thecodebear]

Institutions have most of the money in the world, and they move money around by the hundreds of millions or billions. A handful of institutions coming into bitcoin is like equivalent of millions of people. That's why.

[sunsilk]

In simple terms, it is the huge corporations money coming into bitcoin adding to its market capitalization.

They're for both of those questions that you've asked, even if they're obviously for the profit, still, they're buying bitcoin which also sums up to the adoption.

[dunfida]

I just notice that the words "institutional investment" is very huge in crypto.

can you tell what is the expectation when institutional money is invested?
Do they bring the progress of adoption in the crypto space? or they are just like the whales who buy cheap and sell high for a profit?

I think adoption would result in regular use, but if they'll buy for investment purposes only, that's not "adoption".

When they do hear off those words then the primary thing that would be having into their mind is sudden influx of funds inside the market which they do presume that price would rise up

in result they would really be on panic buying or get Fomo'ed if they do hear out those sentiments without trying to look or realize that it wont really be simple as it sounds.

Impressions is normal and even myself would really be having the same reaction too but of course you would really be needing some confirmations.

[dothebeats]

It's because "institutions" mean "big money" for most people. That's why a lot of people are hyped when they see or hear this word. People already imagine deep pockets taking interest on something that isn't really that big, and that their involvement would mean explosion of the business or something. Just imagine, you are a small business and then someone decided to shower you with money to expand and to better yourself and market yourself. The attention would be massive for you, and business will be booming.

[GreatArkansas]

Yeah, some people too are using "institutional investment" for some FUD or fake news to manipulate the market.
That's how huge money is in the institution, but let's not also ignore the retail investment, it could also drive the market even if retail.

So always verify when you read or head in "institutional investment", they can use it for negative or positive effect.

[adaseb]

Because instutional investors usually are large whales. Most retail people can invest what? Maybe $50K maybe $100K if they are lucky to hold that sums. Most however invest less. So they don't really have a large effect on price. Institutions usually can have billions of dollars under their care and they can move markets.

Its not only in Bitcoin or crypto. If there is some large investor like Warren Buffet and he is buying some low/middle cap stock? Everybody will also want in on that stock as long as he's buying. Because he can buy enough to move price to a point where you can make a decent profit.

Then it opens the door to IRAs and ETFs which is what everybody wants. Which means more and more money can flow into crypto. So more money flowing in... means higher market cap and higher prices and more liquidity.

[Kemarit]

If I may add, not just they have the huge money, but somewhat majority of this institutions is already established in the field of financials, stocks, gold, oil and other assets. So them dabbing in crypto is seen as sort of bringing confidence in Bitcoin itself.

So Bitcoin enthusiast are elated once they heard the word "institutional investment" because the influx will be big and those entities are not just going to pull their investments when the price goes down as compare to retail investors, they are in for the long term, so it's a plus for us.

[777Jolami]

Institutional investment is a collection of links, it is hardly from one or the individual.  It can be a financial corporation, a collection of banks...etc.  Any type of business, they need partners, connections.  That means they are stronger than the retail investors in the market.  Its impact and consequences are more volatile but also suggest a higher perceived market significance. Institutional investments with a clear plan, such as Grayscale, are also referred to as institutional investments.

[EdenHazard]

If I may add, not just they have the huge money, but somewhat majority of this institutions is already established in the field of financials, stocks, gold, oil and other assets. So them dabbing in crypto is seen as sort of bringing confidence in Bitcoin itself.

So Bitcoin enthusiast are elated once they heard the word "institutional investment" because the influx will be big and those entities are not just going to pull their investments when the price goes down as compare to retail investors, they are in for the long term, so it's a plus for us.

They wont pull their investment at once just like what most robinhood trader / investor did due those institution has everything planned systematically.
that is correct that bringing confidence is what most people feel whenever hearing that kind headlines. the question is..  for how long that confidence could lay on them? not for long and guess what, those institution with huge influence taking advantage on us.

we are dying in the end,  the next question is...  a 51% attack on bitcoin by an instituion?
jeff bezos might doing his own research to conquer the world galaxy.