According to a report by the Chainalysis firm, a large number of Wall Street investors are moving their funds into cryptosystems. According to this analysis, these are multi-million dollar investments and, at the same time, they explain that it is a trend that is just beginning.
This means that, in the near future, these large investments by professionals will remain small compared to future ones. The interest in crypto currencies, not only in Wall Street, but in other important markets around the world, may be a trigger.
At the same time, it is explained that this adoption by institutional investors would bring important advantages to the cryptosystem. One of them is that, the maturity that this market would reach would help it with volatility problems.
Wall Street is betting heavily on crypto-currencies
The aforementioned Chainalysis report states that the majority of transactions in cryptomonies carried out in the United States come from Wall Street. „By June, approximately 90% of the crypt transaction volume in the United States came from professional investors,“ it says.
It should be noted that, in the wake of the pandemic and the impacts it has had on the economy, investors are looking for solid ground. Crypto-currencies, with Bitcoin at the forefront, have demonstrated their ability to overcome this type of crisis.
Other markets, after the initial collapse of the stock markets, have barely managed to recover. Bitcoin, for its part, left the problems related to the pandemic behind in a few weeks. Now, it is one of the most solid assets and one of the most advantageous reserves of value.
This has prompted Wall Street investors to target and channel their funds into cryptosystems. Bitcoin’s improved price position is a positive
Wall Street hates Bitcoin?
Institutional investments on the rise
On the other hand, Chainalysis‘ report reveals that the growth of investments in Bitcoin Billionaire cryptomonies, by Wall Street, is growing at an impressive rate. Thus, in 2019, investments of more than $1 million were 46%. Now, in 2020, they exceed the 57% margin.
Even with this type of data about the growth of large investments in cryptosystems by Wall Street, the report notes that these do not have a significant weight. In other words, it assures that the entry of digital currencies in investments „is just beginning“.
„Institutional money is only just entering the crypto currency ecosystem, so the market is relatively fragmented and immature,“ Kim Grauer told Forbes, who also says that the current potential of crypto currency is unable to solve the volatility problems on its own.
This, in his opinion, is not a problem without a solution. This is due, in his opinion, to the fact that the entry of professional investors from Wall Street, could help cryptomonies to obtain the necessary maturity to reach a dominant position.