Institutional investors are the "Gdo" of the cryptocurrency market.
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Since the price of bitcoin collapsed at the beginning of last year, the entire cryptocurrency industry, like Di Di and Gogo, who are poor in Waiting for Godot, have been eagerly awaiting the arrival of institutional investors and can be saved. The basic argument is that once institutional investors enter the market, with their millions of millions of funds, it will be able to easily save the entire encryption market.
"Godo" was three times close to the encryption market
In the past year, three major events have been unanimously recognized as the absolute indicator of the arrival of the "Godo" in the encryption market, but the same is also facing repeated delays.
The first is in the past year, eagerly expecting US regulators to be the first to approve bitcoin or Ethereum ETFs, as ETFs are the main investment vehicle for institutional investors to enter crypto assets. Despite repeated attempts by many applicants, the US Securities and Exchange Commission (SEC) has not yet approved any Bitcoin/Ethernet ETFs. The latest development is in mid-May, when the SEC again postponed Bitwise's Bitcoin ETF approval.
Although experts and officials across the industry seem to have repeatedly stated and hinted that the cryptocurrency ETF is only a matter of time, the SEC (or other major regulator) has no solution to the decision to issue approval.
Then, Bakkt, a crypto-equity trading platform set up by ICE, the parent company of the New York Stock Exchange, was also sought after as a savior to open the next wave of bull markets.
Bakkt with a semi-official background is interpreted as a self-compliance once it is launched, which is equivalent to the official opening of the crypto assets, allowing Wall Street institutional investors to enter. Bakkt expects to launch a physical delivery bitcoin futures contract, which is not only the ideal investment target of the organization, but also hopes to make the encrypted assets easier to circulate to the real industry through this trading market.
However, since the company was established in August last year, the launch date has been postponed repeatedly. Now, Bakkt no longer gives a new timetable, only indicating that it is still working closely with regulators such as the US CFTC. The latest news is that its bitcoin futures contract will be tested in July this year, but the test date is not stated, let alone online.
Bakkt was once considered a bear market savior. At the end of last year, there was a wave of STO (Security Token Offering) of securities-type tokens, which was once seen as a new enthusiasm.
Because of the big bull market in 2017, the biggest cause is the ICO frenzy caused by the establishment of the Ethereum ERC-20 standard. The encryption industry expects that if it can pass the legal and compliant STO, the institutional hot money will have access to it, which will inevitably lead to a wave of financing. .
But in fact, STO compliance is not as simple as it seems, and the promotion of the capital market is far less than expected. In mid-October last year, tZERO set the world's first record of reviewing STO projects through the US SEC. So far, the SEC has passed about 40 projects, but in terms of issuers, issuance quotas, investors, lock-up period, disclosure documents, etc. There are many restrictions.
Then, domestic regulators also quickly expressed their views on STO. Huo Xuewen, director of the Beijing Municipal Bureau of Local Financial Supervision, warned in the speech that if STO practitioners carry out activities in Beijing, the government will treat them as illegal financial activities.
Subsequently, the Singapore Monetary Authority (MAS) issued the “Digital Token Distribution Guide”, which caused many people to turn to bet on Singapore as the next STO outbreak. However, in January of this year, a local STO project was stopped because of a propaganda article on LinkedIn. The industry realized that the MAS was to be strictly controlled, and the STO was cold.
So over a year or so, the encryption industry is still a variety of propositions, and advocates, once and for all, institutional investors will flood in. How this is done may be the formal adoption of a regulation, the real entry of a giant, or the actual launch of certain infrastructure.
At the end of each scene, "Waiting for Godot" has a slightly timid letter of child who claims to be sent by Godot. It is reported that Godot will postpone the arrival, but will definitely arrive. In the encryption market, we can also see that such expectations are constantly being delayed, but they continue to continue. So far, many messengers continue to bring "Godo" news.
For example, in February of this year, Morgan Creek Digital, which focused on cryptocurrency investments, announced that two US pension funds have become the biggest supporters of its $40 million cryptocurrency risk fund, marking the first time that US pension funds have been involved. Encrypted currency investment.
In March, Coinbase Custody announced that it will begin offering staking (PoS mining) services to institutional clients. The first project to be launched is Tezos, which is expected to support popular PoS projects such as Cosmos and Polkadot. Institutional customers can place PoS tokens in Coinbase, which is hosted by the exchange.
In May, Fidelity Investments announced a survey that institutional investors are increasingly willing to add crypto assets to their portfolios. Fidelity said it surveyed more than 400 US institutional investors and found that about 22% of institutional investors have certain crypto assets, and nearly half (47%) believe that crypto assets can account for a portion of their portfolio.
Nearly half (47%) institutional investors believe that crypto assets can account for a portion of their portfolios. However, the current market value of cryptocurrencies is still only about $270 billion, only about one-third of the peak period. Institutional investors with abundant funds are still Godot who only "sounds the stairs". Some analysts also believe that this bitcoin has rebounded to a price of 8,000 to 9000 US dollars, not from a large amount of new funds, but mainly the return of existing funds.
In "Awaiting Godot", when Gogo asked what Godot was doing, the boy who was considered a messenger replied, "He does nothing, sir."
The Irish dramatist Vivian Mercier once described "Waiting for Godot", which "achieved what the theory could not achieve – the drama did nothing, but still nailed the audience to the seat."
At present, the overall cryptocurrency market value is only about 270 billion US dollars, only about one-third of the peak period.
How does the encryption industry imagine its "Godo"?
Why is this so? Because waiting for Godot is waiting for a hope. And this hope is constantly changing in people's imagination. And how does the encryption industry imagine their Godot?
Michael Novogratz, the founder of Galaxy Digital, the most frequently screaming institutional investor, said in an interview with Morgan Stanson founder Anthony Pompliano in March that Bitcoin is likely to be in the next 20 years. Keeping pace with gold, reaching a market value of $8 trillion, and the combined strength of institutional funding is the reason behind it.
In an interview recently, CoinBase, the CEO of CoinBase, which actively arranges institutional investment services, said that 90% of the capital market is from institutions. “We need institutional funds to mature and grow the cryptocurrency industry.”
But Nikolay Storonsky, CEO of Revolut, a London-based digital banking startup involved in cryptocurrency services, believes that so-called institutional investors are "very interested" in the encryption market. Financial institutions are not the next wave of cryptocurrencies when they are not in progress. The pusher of the rally.
Dogecoin founder Jackson Palmer is more opposed. He believes that the arrival of institutional investment will weaken the original spirit of decentralization, anti-censorship and anti-regulation in the cryptocurrency and blockchain industries.
Who is Godot? What is it like? It is the biggest guess in the whole movie "Waiting for Godot." It can be said that the imaginary and hopeful Godot described by each character in the play does not look the same. There are 100 appearances of Godot in 100 people.
In the drama, Di Di and Gogo went through a long wait, and finally did not wait for Godot. In reality, the Didi and Gogoers in the encryption industry may not be so hopeless, but it is certain that even if Godot really comes, it is impossible to meet everyone's conjecture and satisfy everyone's hopes.
“The blockchain technology is very complicated and has many misunderstandings. What is even more frightening is that many people think that they understand blockchain technology, but they are ignorant. Academic institutions have a huge responsibility to train the next generation of innovators. Campbell Harvey, a professor of blockchain courses at Duke University Business School, once said.
Every emerging technology development has its own cycle, and the more it is likely to bring about major changes in technology, this cycle is often more obvious. Just as blockchain technology entered the so-called "disillusionment low valley", the reporter believes that the next industry enthusiasm is now being discussed in the laboratories of each top university, in the research offices of central banks and regulatory agencies, in industry organizations. It was brewing in the meeting.
The reporter believes that this is the key moment. As a professional media and technology service provider who insists on in-depth coverage of the science and technology industry, we have the responsibility and the need to lead readers to open up the fog and clarify misunderstandings at this point in time. Cultivate a deeper understanding of blockchain technology. (DeepTech Deep Technology)