Digital infrastructure remains the key investment point

Digital infrastructure remains the key investment point

Institutional investors continue to look for key infrastructure projects that Will shape the future of the crypto industry. Famous investment names like Abrdn, Blackrock,and Carlos Swab is launching new crypto-related Projects that are in demand by institutional and retail clients.

big money is being accumulated in the middle the growing demand for cryptocurrencies active as many believe cryptowinter Will not last long In fact, cryptocurrencies has been suffering of a big drop since last November as Bitcoin prices (BTCUSD) it plummeted from nearly $69,000 to $19,000 in June. ethereum prices (ETHUSD) followed the leading digital currency by dipping in sync from $4,860 to $883 on the same period. Many believe that the downward cycle in the crypto market has been over since the prices of the major digital currencies reached the peaks of the previous bull cycle of 2017, when Bitcoin reached a tall of $19,891 per coin. Some believe that these previous peaks are not a brick wallis which provide to CRYPTOCURRENCIES with nothing else to do than dive lower. The most pessimistic forecast for the main cryptocurrency is that it can dip to $6,000 per coin, which is over 90% off its highs and over 70% off its June lows.

However, such a dramatic drop is not seen to be a heavy burden for the big investment houses, since they base their strategies in long term perspectives that could last decades. Then why it is big money just come to the market now, as the market is experiencing a third-tier generation as many new projects emerged during the years of the pandemic. In part, it is not true. a lot of moneyY always has been circulating around the crypto industry, hoping for to become a more legitimate and mature market. Some big money early birds entered the market in 2021 after Bitcoin rallied 170% the year before. In November 2020, Guggenheim Partners submitted an amendment with the US Securities Commission to allow its $5 billion Macro Opportunities Fund to invest up to 10% of the fund’s net asset value in Grayscale Bitcoin Trust, an ETP that tracks the price of bitcoin. went even further to create another fund focused on derivatives that clue underlying crypto assets with potential exposure to bitcoin. yesSome prominent investors, including Paul Tudor Jones, also joined the crypto fever like the inflation the spirals only looked to pick up the heartbreaking double digitsfrom 2022.

Large institutional investors bet in developing long-term infrastructure and crypto services that could be delivered to its customers. So it’s not a matter of hit-and-execute strategies that are attributed more to cryptocurrency enthusiasts. BlackRock recently announced its partnership agreement with prominent large cryptocurrency exchange Coinbase to offer the first direct token investment product for its clients. Brevan Howard raised over $1 billion for a crypto fund. Abrdn, one of the largest investment housess in the United Kingdom,Announced the purchase of a great participation in the UK-regulated digital asset exchange Archax would allow the firm to join the board of the exchange. The leading US investment group Charles Schwab launched an ETF with crypto exposure without buying crypto themselves. Other UK asset manager,Schroeders, bought a stake in digital asset manager Forteus in July.

These examples testify that interest from institutional investors is not waning as digital asset prices are falling sharply this summer. Some may consider these movements What being a good sign for a possible recovery that is backed by the Recent rally in crypto assets. But these hopes could be wishful thinking as conditions for short term investments in risky crypto assets are deteriorating. The US federal Reserve is likely to continue its monetary tightening through 2023. Tits may seriously impact the prices of crypto asset at the beginning.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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