Why Institutional Allocation to Crypto Is on the Rise

Market infrastructure is also maturing, with the two largest crypto assets, Bitcoin and Ether, now having regulated futures products traded on the Chicago Mercantile Exchange (CME). The likelihood of a spot ETF tracking the bitcoin spot price gaining approval in the United States is increasing, potentially opening the doors to a wider range of investors by making crypto more accessible through traditional brokerage accounts, 401(k)s and IRAs. Institutional over-the-counter markets, exchanges, clearinghouses and custodians backed by traditional financial institutions are also entering the market. These developments add a layer of credibility and trustworthiness to the crypto ecosystem. In short, these and other developments provide institutions with the tools they will need to allocate capital and manage risk effectively.

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