What We're Missing About Institutional Investment in Crypto Winter

Published on by Coindesk | Published on

The following article originally appeared in Institutional Crypto by CoinDesk, a newsletter for the institutional market, with news and views on crypto infrastructure delivered every Tuesday.

You would be forgiven for thinking that the crypto winter seems to have passed the institutional crypto sector by.

Assuming that institutional investment is not driven by the same sentiment that is keeping this crypto winter cold would be a mistake.

If their clients are not interested in crypto investment, it's unlikely that they will be.

Expecting institutional investment to defy the prevailing chill and pour investment into the market as soon as the infrastructure is ready is unrealistic.

The crypto winter has been harsh for many, but it has given startups and incumbents a welcome respite from the market spotlight.

While a more complete infrastructure may not be sufficient to get institutions involved, it is necessary, and its growth and increasing maturity will help many institutions to see crypto as less risky.

Greater comfort and familiarity with the sector will encourage firms to listen when enough of their clients indicate a change in market mood by asking about crypto opportunities.

What's more, overall market conditions - not just in crypto - could augur a shift in sentiment.

The growing interest in crypto investment on the part of both traditional institutions and focused market participants - even in a bear market - is a sign that sentiment will turn at some stage.

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