The cryptocurrency market hasn’t seen a lot of progress in terms of price over the last 12 months. In fact, there has been an ongoing bearish trend that was ignited right after the bullish rally. While this downtrend has left many investors in the market anxious, it hasn’t stopped some of the biggest players in the financial world from getting involved. Players like Fidelity, Sequoia, Nasdaq, and Baidu, over the past week, made some big bets on the industry. What does this mean for the industry? How will the interest from these firms affect the mindset of the average retailer?
First of all, Nasdaq, the second largest stock market firm in the world and Fidelity, the fourth largest asset manager in the world, on the 4th of December, announced that they were investing in ErisX. ErisX is a cryptocurrency exchange that was able to secure $27.5 million from a funding round within less than two months. This round came after the company raised some funds from TD Ameritrade, an electronic brokerage company that is worth over $30 billion.
At the time this funding round was completed, J.B. Mckenzie, one of the directors at TD, said that investing in ErisX is one way the firm intends to show that it has interests in providing a safe and compliant cryptocurrency investment platform for people in the U.S. In his words:
“We wanted to find something that makes cryptocurrencies more accessible to customers. They should be able to see and trade cryptocurrencies on regulated exchanges they are comfortable with.”
ErisX will be able to use this capital to expand its team and provide support for institutional investors as well as retailers within all 50 states in the United States. The CEO of ErisX had this to say about his company’s plans:
“Thanks to our increasing financial support, we can provide a robust, secure and regulated environment for offering digital assets that will be accessible to individual retailers and institutional investors. This second funding round will allow us to expand our team and build a modern platform.”
What Does The Investment Say About The Industry?
The fact that two financial giants, Fidelity and Nasdaq are investing $27 million into the cryptocurrency industry means that they have strong confidence in it. While it’s hard to be positive about the industry at this time, these companies have demonstrated that they believe in the long-term growth of the cryptocurrency market. This move is going to ignite the interest of investors on a global scale.
Bitcoin (BTC) Price Today – BTC / USD
The move is most likely going to reassure investors that there is hope for long-term recovery and growth in the industry. At least people will know that digital assets aren’t a fad and the bear market isn’t the end of the road for cryptocurrencies.
Who Else is Raising Money?
Apart from fidelity and Nasdaq, Sequoia, one of the largest venture capital firms in all of Asia, has also placed a big bet in the industry. Along with Baidu, the biggest search engine operator in China, Sequoia invested $35 million in a blockchain protocol that was created by Dr. Andrew Chi-Chih Yao, Turing award winner and professor at Tsinghua University.
Through initial coin offerings about $60 million has entered the market. This is rather impressive considering the fact that regulators have been all over the place.