Research firm Tabb says institutional money might enter the market this year

15 May, 2018
by Joeri Cant
Research firm Tabb says institutional money might enter the market this year

Tabb, the capital markets research and consulting firm stated: "If 2017 was the year cryptocurrencies went mainstream, then 2018 is certainly shaping up to be the year they go institutional"

They went on to say, that this is the year that institutional money will come into the cryptocurrency market, and this thanks to the development of trading infrastructure.

"The word on the street is that significant additional institutional money is being amassed and is waiting for the right conditions to enter the market — and expected to start doing so this year."

The market capitalization of all cryptocurrencies has halved from $800 billion in January to around $400 billion this month, according to CoinMarketCap. Therefor, many cryptocurrency investors have been waiting for institutional money to enter the market, hoping that when it happens, the digital currency market will receive a significant boost.

The real growth will be spurred on by the individual investors who want to participate in the crypto market through institutional platforms and by the market forces that make the possibility of significant profits 'too good' to pass up.

Today three main hurdles prevent institutions from participating in the cryptocurrency market at scale, the report said. Regulatory uncertainty, lack of market infrastructure and institutional-grade data source, has forced much of the institutional trading volume into over-the-counter trades which range from $150 billion to $30 billion in daily trading volume.

The analyst continued saying: "the newest technology providers entering this space are led by people from the wholesale financial markets who claim they have spotted a significant market gap waiting to be filled"

Institutional money is on its way!

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Read more about: Bitcoin (BTC)


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