Spencer Bogart, a partner at major cryptocurrency venture capital firm Blockchain Capital, said that the institutional sector of Bitcoin is only getting stronger.
Although the valuation of the cryptocurrency market has dropped by 85 percent since achieving $816 billion in January, with the involvement of Nasdaq, Fidelity, NYSE, Bakkt, and large financial institution, the venture capital investor said that the infrastructure supporting Bitcoin is strengthening rapidly.
What 2019 and Ahead Will Look Like For Bitcoin
In late 2017, when the cryptocurrency market experienced one of the largest bull markets in recent history and the Bitcoin price surpassed $19,000, retail traders and individual investors mostly drove the market to new highs.
In the long-term, Bogart stated that the establishment of a strong infrastructure with security, investor protection, liquidity, and compliance will facilitate the inflow of capital from institutional and accredited investors.
Already, endowments like Yale have reportedly made investments in the cryptocurrency space through regulated funds and a growing number of financial institutions have started to serve as custodians to facilitate deals for large-scale institutions.
Meanwhile, the institutionalization of the asset class and the ecosystem itself are only getting stronger. We’ve seen endowments like Yale, Harvard, and MIT move into the space. We’ve seen Nasdaq and Bakkt start to move into Bitcoin derivatives. We’ve seen qualified custodians move into this space. And lastly, and perhaps the most encouraging thing is the quality of the talent we’re seeing entering the space.
The next rally of cryptocurrencies could be triggered by a new group of established and accredited investors,