Cryptocurrency industry giant Coinbase recently got a major client for its institutional brokerage service. Reports are that a major hedge fund just started using the institutional brokerage platform to invest in cryptocurrencies. The reports from Business Insider didn’t specify the name of the $20 billion hedge fund but stated that the hedge fund is now using Coinbase Prime. This is a good sign for the cryptocurrency industry. It shows that institutional investors are getting ready to enter the market and push cryptocurrencies into the mainstream.
Institutional Investors For The Cryptocurrency Industry
Coinbase set up a Chicago office earlier this year. The location is well-known as the regional hub for professional trading companies. Having an office in Chicago allows Coinbase to effectively provide client in-person services to institutional investors and hedge funds. It will give them the opportunity to build a solid relationship with clients.
Ethereum (ETH) Price Today – BTC / USD
The news about catching a big whale comes after reports that Grayscale Investments, a company that offers various cryptocurrency investment options as traditional financial investments, gets up to $10 million in new investments weekly. Institutional buyers makes up for 56% of this figure.
Circle, another cryptocurrency giant, has also attracted more institutional clients over the past months. Recently, circle reportedly had a 30% rise in institutional clients. The firm has also recorded a lot of activity from large scale buyers. It recently increased its minimum order price to $500,000 on its crypto trading desk.
The Cryptocurrency Revolution Is Imminent
There has been a growing number of investors in cryptocurrencies from hedge fund billionaires. However, most of these visionaries are yet to allocate any money from their funds into cryptocurrencies, a move that they are bound to take soon. Already, some well-known investment whales are investing in cryptocurrencies. Just a few days ago, Marc Lasry, the owner of Avenue Capital Group, a $9.6 billion asset management firm, said that he invested 1% of his estimated $1.7 billion person assets in Bitcoin. He also said that he sees the price of Bitcoin going as high as $40,000 in the coming years.