Circle acquires Poloniex

Discussion in 'Crypto Assets' started by johnarb, Feb 26, 2018.

  1. johnarb

    johnarb

    Fileiro, Cuddles, zdreg and 1 other person like this.
  2. Fileiro

    Fileiro

    The bigger picture is obviously the fact that while the big banks are keeping themselves very busy attacking crypto outwardly, they are quietly positioning themselves to ride the mania phase that comes around when pension funds and other institutional money all scramble to get in..
     
    johnarb likes this.
  3. johnarb

    johnarb

    It's funny you mentioned that, It's already starting to happen :D

    https://www.wired.com/story/why-a-t...geek&utm_medium=email&utm_campaign=newsletter

    Surging Demand
    Late last year, as the world turned crypto-crazy, Kingdom and BitGo began to focus on offering custody for institutional investors. The timing was perfect: Crypto hedge funds had been proliferating (an estimated 100 new ones launched in 2017) and the skyrocketing price of bitcoin, ethereum and other “alt coins” meant small funds were suddenly sitting on tens of millions of dollars in crypto assets. That creates a compliance problem. Once a hedge fund crosses $150 million in assets, it is required to store its assets with a qualified custodian. Belshe estimates two dozen hedge funds crossed that threshold last year, but are not complying with the rule.

    Indeed, an SEC letter in January stated that custody is a key issue facing “fund innovation” related to crypto holdings. Industry advocates including Union Square Ventures’ Fred Wilson have called for “institutional-grade custodians” to help firms comply with the law and offset security risks.


    Since launching, cryptocurrency custody is “by far” Kingdom’s fastest growing asset class. Belshe estimates there’s $10 billion worth of hedge funds holding crypto assets in the market, and another $10 billion of demand waiting to invest. He’s seen growing interest from typically conservative mutual funds and pension funds.
     
    Fileiro likes this.
  4. Fileiro

    Fileiro

    When pension and mutual funds decide crypto is ready as a portfolio diversifier.. look out above! :D
     
    johnarb likes this.