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Established institutional traders and wealth managers go big into crypto assets

Crypto market keeps going institutional as 60% of key wealth managers make the move

Professional traders and investors are beginning to test the cryptocurrency market as demonstrated by a study by Nickel Digital Asset Management, a British an investment management company that combines traditional finance with the digital assets market.

Reports in London today have shown that around 60% of institutional traders and fund management companies in regions that are key to the financial markets economy including the United States, Britain, France, Germany and the United Arab Emirates are looking to invest in cryptocurrency assets for the first time within the next year.

This is followed by 44% of investment managers which indicated that they would go down this route because more corporates and fund managers are investing in cryptocurrencies, which gives them greater confidence in the asset class, and 41 per cent who said it is because the regulatory environment is improving, something CoinMetro has been an advocate of since its establishment.

For the institutional funds and wealth managers, several key reasons for investing in cryptocurrency assets have been highlighted. Those include the potnetial capital growth in cryptocurrencies, the dynamic in which an increasing number of leading corporates and fund managers are investing in cryptoassets, the regulatory environment for the sector is improving and that crypto provides a good hedge against inflation.

Additionally, they offer strong portfolio diversification benefits, there will be more crypto assets focused investment vehicles to choose from, custodial services/security around the holding of cryptocurrencies is improving and the liquidity of the market is increasingly being established.

These infrastructural matters are very much part of CoinMetro’s remit, and back in May 2021, the imminent launch of Uniswap v3 began to be mooted via various sources close to the matter.

One of the main advancements with the introduction of Uniswap v3 is that liquidity providers can provide liquidity with up to 4000x capital efficiency relative to Uniswap v2, earning higher returns on their capital, and given that this is an intrinsic part of the incredibly empowering and sophisticated DeFi world, it would require a decentralized approach unless a user has access to a L2 via a fiat on-ramp such as CoinMetro.

In terms of liquidity diversity, Uniswap v3’s pool interface now supports the creation of Uniswap v3 positions with multiple fee tiers and concentrated liquidity ranges. Each position is represented as an NFT and comes with a unique piece of on-chain generative art which is very on-trend, and adds a charismatic edge to the user experience.

This all makes for an absolutely integrated experience, when transacting fiat currency to crypto in order to then access the new protocol, and it is perhaps assisted by the basic notion that Ethereum is especially renowned for having a vast array of decentralized applications developed on it, which sparked one of the booms in the development of DeFi.

This goes hand in hand with the refinement of custodial services for cryptocurrency, and CoinMetro has been a pioneer in this field too.

Not only is CoinMetro a fully regulated cryptocurrency exchange, but it also offers custodial services for private and corporate customers, including business accounts in which to hold treasury in cryptocurrency.

Many seasoned investors are considering important cryptocurrency asset such as Bitcoin to rise to multiples of their current value, a sentiment backed up by some futurists within major institutions.

Joseph Raczynski of Thomson Reuters said a few weeks ago that he believes bitcoin will initially overtake the dollar by 2025 with a value of $150,000 by that time.

At a Forbes panel, he said “Some countries will leverage bitcoin as their primary currency of choice. With fixed circulation, ease of transfer, it will serve them well to move to a ‘bankless’ model inherent in this ecosystem.”

Described by a panel of 42 experts last month who think that ‘hyperbitcoinisation’ will occur within the next 30 years, while also forecasting that Bitcoin could be worth $4.3 million by 2030, there is thought that by 2050, it will supplant the US dollar globally.

Clearly the instititional investors and fund managers who are responsible for ensuring the most effective outcome for their investments are now gaining the opinion that regulation, superior infrastructure and opportunity are now factors that are not to be viewed lightly.