Yoni Assia, the CEO of eToro, a major multi asset brokerage firm with more than eight million active users, has said in an exclusive interview with NewsBTC that some institutions have already broken into the crypto market.
Institutional Investors are Already Present in Crypto Market
Throughout the past few months, prominent investors and analysts including BlockTower’s Ari Paul and Multicoin Capital’s Kyle Samani have emphasized that to assist the entrance of large-scale institutional investors into the crypto market, an institutional suite of products are necessary.
Several custodian and institutional solutions have emerged in the second quarter of 2018, equipped with secure vaults, cold storage, insurance, and internal management systems to protect the capital of major investors.
Consequently, the market has already seen a few institutional investors allocate capital into digital assets such as Bitcoin, and regulated financial institutions such as $89 billion investment bank Goldman Sachs have started to offer Bitcoin products to their clients.
“We are clearing some futures around bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too,” David Solomon, the newly appointed CEO of Goldman Sachs, said.
Acknowledging the rise in interest towards an emerging asset class in digital assets, eToro CEO Yoni Assia emphasized that more institutions will follow in the upcoming months to facilitate the growing demand towards Bitcoin and potentially other major cryptocurrencies from investors in the traditional finance sector.
“We have already seen some institutions breaking into the crypto market, offering Bitcoin products to their customers. This is set to continue, as investors recognise the value of blockchain technology. Goldman Sachs recently opened their Bitcoin futures trading desk and we expect more financial institutions to follow. Bitcoin is of course the most well-known cryptoasset, but as the market develops and investors familiarise themselves with these new assets, the scope of products offered will increase. We expect that Ethereum and others will closely follow Bitcoin products offered by market incumbents.”
As widely utilized Bitcoin exchange BitMEX CEO Arthur Hayes previously stated, one key regulatory change by a major market like the US, Japan, and South Korea could allow the market to establish strong fundamentals to support the next rally.
Earlier this year, the US Securities and Exchange Commission (SEC) formally recognized Bitcoin and Ether, the native cryptocurrency of Ethereum, as non-securities, clearing up regulatory uncertainty in the blockchain sector.
The approval of a Bitcoin exchange-traded fund (ETF), which experts predict could happen in February of 2019, could be the next crucial regulatory decision that will likely lead the cryptocurrency market to prosper in the mid-term.
“Decisions by regulators help to provide the market with some much-needed clarity and certainty, creating an environment more conducive to market development. We welcome considered and informed government policy towards cryptoassets. Governments definitely have a role to play in protecting consumers, and helping to create a well-regulated, trusted market as a foundation for the future of money over the long term,” Assia said.
Already, eToro, one of the biggest stock and FX trading platforms, has integrated 11 cryptocurrencies on its platform, and other platforms in the traditional finance sector such as Robinhood and Revolut have moved towards supporting digital assets.