Institutional investors from Wall Street probably postpone their plans to enter the cryptocurrency market. All by falling rates of major crypto-assets. Bloomberg informs about this phenomenon on December 23.
From the article, we learn that giants of the financial market such as Goldman Sachs, Morgan Stanley, Citigroup Inc. and Barclays PLC are delaying entry into the digital currency space. Barriers are allegedly issues of prices, demand and legal regulations.
On the one hand, Justin Schmidt, employed as a director of digital assets at Goldman Sachs, revealed in November that regulators are limiting their plans for market legislation, which probably also cooled the plans of institutional investors. Bloomberg adds, however, that his anonymous interlocutor relayed information that Goldman intends to hire a digital asset specialist in his main brokerage department.
When it comes to Morgan Stanley, the company is ready to introduce cryptocurrency swaps from autumn. However, its management decided to wait until any more visible demand signal appeared.
Citigroup and Barclays are experiencing similar problems today. Bloomberg sources state that companies have not yet introduced any products related to cryptography, because the barrier is the lack of regulation.
Investors will enter the market in half a year?
In October, former partner Goldman Sachs and current general manager of Galaxy Digital Mike Novogratz, predicted that institutional investors would likely enter the crypto marketplace in the first half of 2019.
The publication of the Morgan Stanley report entitled “Update: Bitcoin, Cryptocurrencies and Blockchain”, stating that Bitcoin (BTC) and altcoin constitute a “new institutional investment category”, may be a promise for the emergence of large players on the market.
In 2019, we will also have the start of Bakkt, a digital asset platform created by the operator of the New York Stock Exchange. Its planned launch is being prepared on January 24, 2018. The American investment firm Fidelity has also announced the introduction of a commercial service targeted at institutional investors.