proved! Coinbase CEO says institutional investors are entering the market at a rate of $2-4 billion per week

On August 16, US cryptocurrency giant Coinbase announced the acquisition of cryptocurrency trusteeship of Xapo, an early cryptocurrency company, for $55 million. Coinbase CEO Brain Armstrong also forwarded the news on Twitter and said "Coinbase Custody has become No.1 for cryptocurrency hosting services."

WX20190816-151255@2x

The cryptocurrency hosting service boomed in 2019. Nowadays, cryptocurrency investors are gradually entering the market, and one of the barriers to blocking them is the lack of hosting services. Secure cryptocurrency hosting services have always been the focus of institutional investors, and cryptocurrency hosting is also known as the only way for institutions to enter the market. Fidelity Investment, Bakkt, etc. are all preparing for the related custody business, and even the financial giant Goldman Sachs is preparing to provide it.

Institutional investment in cryptocurrencies has been seen by the industry as a bull market promoter and will bring significant capital to the cryptocurrency industry. In 2019, the cryptocurrency industry began to recover from the bear market in 2018. Bitcoin rose more than 130%, and many people believe that it is promoted by institutions.

Armstrong said on Twitter:

"About 12 months ago, whether the organization would use cryptocurrency or an unresolved issue. I think it’s safe to say that we now know the answer. We see institutional customers adding cryptocurrency deposits of $200 million to $400 million per week. ""

WX20190816-151310@2x

The view of large-scale entry of institutional investors was confirmed by Armstrong.

He also said that

“For organizations, a trusted/secure infrastructure is just a small step in building a “encryption economy.”

WX20190816-154818@2x

The competition in the field of cryptocurrency services is becoming more and more fierce. One of the important players is Fidelity. Fidelity Digital Assets, a subsidiary of Fidelity International, the largest asset management company, announced earlier this year that it has launched its Bitcoin hosting solution to the "Selected Qualified Customer Group." Last month, it was reported that the branch had applied to the New York Financial Services Department (NYDFS) to become a trust fund in New York. Fidelity is the world's largest asset management company with assets of $7 trillion. GreenSpan, senior market analyst at eToro, said, "Although Fidelity may not be the first service provider to encrypt asset-related products, it is probably the biggest."

As Fidelity's biggest competitor, Coinbase's acquisition of Xapo's managed services will further strengthen its industry advantages, and will also make the industry services more perfect and attract more investors.