‘Tis the season for bitcoin as cryptocurrency news reported a price hike from $5000 to $8000 for May 2019. Institutional investors take a closer look.
This parabolic curve was predicted to happen months ago as institutional investors kept watch of market trends. The price increase was attributed to the interest of institution investors as more and more companies go through indirect investments. An example, Grayscale Bitcoin Trust has $1.4 billion assets in management with the funding available through available accounts. And not only are institutions driving cryptocurrency exchange, but retail investors picking up.
Rising interest with cryptocurrency from different industries are calling for crypto integration. But even if more investors are looking into cryptocurrency investment, but can the industry keep the interest?
Cryptocurrency reception has been up and down the past few years. Controversies aside, this is not the first time companies spoke of interest. Before, the confusing challenges of cryptocurrency investment drove people off saying it’s quite hard to manage. Luckily, token developers have been working hard for a solution. In relation, more and more software have been developing under the radar.
It’s the Institutional Investors. They Tipped the Scales
There was a long crypto winter the past months. Cryptocurrency news thought the interest died down and the ship has sailed according to skeptics. A few analytics expected it to rise again, citing the law of supply and demand. When institutions from around the world started taking notice, crypto watchers predicted a bullish market. And they weren’t wrong. Institutional investors from Japan, UK and USA have dived into cryptocurrency investments. And the increased attention shifted cryptocurrency volatility drastically.
But It Wasn’t Always Smooth for Them Either
Having institutional investors was always planned from the beginning. But some of them turned away due to tech savvy nature of digital assets. They felt intimidated according to hedge fund managers. And they would mostly turn away when the process is being explained. Once they realize the amount of work and risk in going to crypto asset investment, investment plans are pulled but they were still peeking. Even so, crypto hedge funds and cryptocurrency trading received lukewarm reception. But that was just the beginning.
There Are Only 3% Institution Funds In the Market—And It’s Growing
Bitcoin price is $1500 higher compared to last week alone. Institutions and indirect investors were the driving force in this growth. And yet, the funds are estimated to be only 3%. As interest continues to rise, the amount of assets would continue to pour in. Also, most hedge funds and cryptocurrency investment platform are shifting focus towards institutions—and now retailers are also coming into play.
By having investors from retailers come into the market, history might repeat itself. The factor that drove off those institutions before might drive off the new institutions and retailers again. And so, the cryptocurrency community is clamoring for software.
The Solution: Cryptocurrency Management Platform for Institutional Investors
Managing cryptocurrency is not a walk in the park. The caveat that comes with volatile digital money must be solved in order to keep the institutions interested. And so, Cipher Assets came up with an accounting platform that would be suitable for the situation.
An accounting platform for cryptocurrency investment would make cryptocurrency exchange accessible for all. As more and more cryptocurrency and tokens appear, so would market shifts, buys, and trades. This would require much for paperwork as crypto shift is tracked on a daily basis.
Cipher Assets created a platform to handle the demands of cryptocurrency exchange. The platform would track, trace, and transfer buys and trades through APIs and SSIs. This would lessen the risk for institutions and minimize the mistakes of errors. By having a single software to give an overview, institutional investors would be able to handle their crypto easier.
If cryptocurrency investment is something you and your company is looking into, then your business should have all the latest tools. The new software would make cryptocurrency investment more accessible to your business and open opportunities to create revenue. Interested? Contact Cipher Assets and book a demo from the experts.