Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- Fidelity and Nasdaq Ventures join hands to invest in crypto exchange ErisX
- BTC ETF may not be coming soon but new products would keep institutions interested
- Crypto prices touching interesting lower level which could indicate a bounce may be coming
Institutional crypto products and offerings on the rise
Well, its been a while that Nasdaq and Fidelity announced their intentions to get into cryptocurrency related businesses, but they seem to be in a real hurry to get their hands-on cryptocurrencies. Resultant both Nasdaq and Fidelity have come together to get their hands on cryptos by pooling in an investment of USD 27.5 million in cryptocurrency exchange ErisX which also happens to be a regulated online exchange platform.
This investment will be used by the company to hire staff and “build out our infrastructure and secure the appropriate steps are taken to develop a regulated market for digital assets,” ErisX Chief Executive Officer Thomas Chippas said in a statement.
While SEC is still to pronounce its verdict on Bitcoin ETF, institutions have started looking at options which allows them to invest in cryptocurrencies. This rising interest of institutions in cryptocurrencies and incremental growth in institutional investors related products and services has taken off the dependence on Bitcoin ETF to get in institutional monies. So irrespective, the decision from SEC goes in favor of Bitcoin ETF or, the availability of new product can still get plenty of institutional money into crypto markets.
Are we in for another bounce in crypto markets?
It’s no secret that crypto prices have been under pressure lately. Just yesterday, Bloomberg analysts reaffirmed their position that bitcoin could be headed straight for $1,500. Of course, it’s possible to get that low. Anything is possible in volatile markets but one would say that there are still a lot of key levels before that will more than likely support the price.
Currently, the Bitcoin price is dangling close to USD 3500 support. If it breaks through to the downside the next strong support is at USD 3000. If things get worse the next point to watch for USD 1800 before we see USD 1500. All these support levels had played key roles during the rise of 2017 and hence they just can’t be ignored. Of course, the first on that list and the level we’re currently testing is $3,500, which has been showing incredible resilience so far. For institutional investors looking to invest in the assets rather than the infrastructure, there really isn’t much reason to go in strong at the moment.
However thinking long term, if we do think that bitcoin will pass through the all-time highs anytime within the next decade, it won’t make much sense to wait until it $1,500 to start placing orders.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.