There are more than 400 crypto funds and more than USD 7 billion in crypto funds ready to enter the market. Compared with the number of traditional hedge funds, the number of crypto funds is close to nothing. Crypto fund investing is just beginning and has a huge potential and so much more room to grow.
The top 50 Asset Managers in the U.S. alone manage a total of over USD 30 trillion! If only 1% (USD 300 billion) would be shifted into cryptocurrencies, it would represent more than double the market capitalization of the entire bitcoin market and about USD 100 billion more than the total market capitalization of the entire crypto market together. What would happen if a more realistic 5% would flood into Cryptos? Do the maths!
The infrastructure for institutional investors to enter the crypto market will be built sooner or later. I posted yesterday that Fidelity already made a big step and effort to get involved and pave the way for big institutional players. Secure, regulated custody of cryptocurrencies for institutional investors has to be established before crypto finally can go properly mainstream.
Once you have done the maths, and it should be a no-brainer, you will realize that the institutional boom will come sooner rather than later. If you’re not in the market yet, you should change your mind!
Sven Franssen