My profession is recruiting talent for investment managers, primarily within the institutional side of the business. My clients manage pension and other assets for their clients. Some of them are acutely aware of the crypto space and some not so much. What I do know is this – when institutional money begins to seriously enter the space, prices should move significantly higher. Institutions need custodians to ensure the integrity of the positions of their clients. There have been rumblings from a few players about building custodial platforms which will facilitate institutional investments. Today Nikhilesh De wrote on Coindesk.com that Fidelity Investments intended to develop a trading and custody platform to support some of the large market-cap cryptocurrencies.
Here’s the Link:
It is my opinion Fidelity and others would not be planning to build these platforms unless they anticipated regulatory empathy for the asset class in the United States. It is my expectation the changes in the makeup of the SEC commissioners will lead to a more favorable regulatory climate and greater institutional participation in 2019. I’m certain Fidelity and other large money managers also believe this. They should know better than I do, because some of their legal staff probably came out of the SEC and understand the mindset of commissioners.
In a comment I made a week or so ago I said that the crypto space needs easier entry and broader participation to bring new fiat into the asset class which would result in the higher token and currency prices everyone hopes to see. Fidelity’s announcement gives me more confidence than I had in the past because it’s a tangible indicator higher prices will eventually come.