In recent times there are reports that almost 70% drop in bitcoin prices earlier this year caused a new surge of interest in the cryptocurrency markets by institutional investors.
In particular, the increase in interest from institutional buyers indicates Cryptocampus analyst Jeffrey van Leemput (Jeffrey Van de Leemput), which States that «the market for the first time serious money».
The head of the company Smart Valor Feldmeier Olga (Olga Feldmeier) believes that the rate will amount to $8 000 can speak about the entry of the market into the next phase of growth, «which was expected by many investors».
The representative of the investment firm Evercore rich Ross (Rich Ross), although reluctantly, but also called bitcoin an attractive investment:
«As painful as it is to admit, the price chart is very similar to other highly ranked stocks that I buy».
Investment Director cryptocurrency hedge Fund Capital BlockTower Ari Gender (Ari Paul) said recently that large-scale institutional investment for cryptocurrency is inevitable: «I really think that it is inevitable».
The attractiveness of bitcoin is growing
According to cryptocurrency Saxo Bank analyst Jacob, Poncy (Jacob Pouncey), the ban of advertising and the possible introduction of regulation of crypto-currencies pose a threat to the further growth of bitcoin. However, he believes that «we can’t rule out the possibility of a return to the previous state».
According to Poncy, a sense of growing uncertainty in traditional markets may cause increased demand for bitcoin and other similar assets that institutional investors believe are incompatible with the basic markets.
«In the event of a significant pullback in the stock markets will for the flow of money into incompatible or unavailable traditional financial system assets, a potential alternative which are crypto-currencies».
CME reported an increase in the volume of futures trading
Chicago Mercantile exchange (CME) reported an increase in trading volumes in futures contracts on bitcoin more than 50% since their launch in December 2017. Thus, in comparison with 1600 contracts in December, in March, the exchange has traded around 2,500 contracts (each worth 5 BTC).
According to managing Director, CME Group Tim D. mccourtie (Tim McCourt), the volume of trading on the exchange «is steadily increasing every month.»
He also States that the introduction of market regulation will bring to the industry a greater number of institutional investors, because it «will increase the efficiency of the market and give investors confidence».
The lack of regulation prevent institutional investors
According to co-founder guangshi cryptocurrency investment company Orichal Partners Adrian Lai (Adrian Lai), the main obstacle to mass distribution of cryptocurrency markets is the lack of clear and effective regulation of virtual currencies.
«Regulators do not prohibit the development of cryptocurrency, and trying to better regulate the market, which should contribute to the maturing of this industry, Lai said, if the regulation becomes clearer, the market is guaranteed to come to your money».