One of the most interesting relationships over the past year and a half to watch develop globally has been that of Wall Street and the crypto industry. At the peak of the crypto boom, Wall Street was salivating over the idea of investing into cryptos, hoping
to make as much profit out of it as possible This attitude has soured over the past year, as the many investors on the exchange have seen the values enter the dumps, which seem to be unrecoverable. And yet, despite the hard times that cryptos are experiencing,
and the soaring expectations of the Wall Street sharks, there are many who are still eyeing the industry closely with great expectations. Which is why it seems, the crypto industry is slowly trying to tailor itself for the needs and desires of the mighty markets
of New York and conversely, the world.
Institutional investment has become the main focus
It seems like we have been getting daily news on the subject of cryptocurrencies and crypto exchanges doing their best to tailor their services to the needs of large scale investors. Recently, one of the larger crypts exchanges, BItBay, which finds its origin
in Poland, has introduced the option for its users to
trade fiat for cryptocurrencies over the desk. This move has been hailed as a revolutionary by some users, with some high net worth individuals becoming more interested with the exchange’s services as a result. It is true that many large scale investors,
including institutional investors, have been looking for a way to invest in cryptocurrencies in bulk, without having to go through the many exchanges with high fees that are available on the market currently.
Furthermore, BitBay has also introduced the option to trade with fiat and cryptocurrency pairs. This means that traders will be able to trade US dollars directly for Bitcoin in the fast-paced market, without having to work with intermediaries. The exchange
will allow the users to keep their fiat currencies on their BitBay accounts. This might change the entire market, or how the trading is done on the market altogether.
This is following BInance’s decision, last week, to allow their user's direct cryptocurrency to cash exchanges in one of their 1400 stores across Australia. While this is not necessarily an investor-oriented move, it definitely benefits traders and those
who would speculate with cryptos in order to earn some extra cash.
Furthermore, both the crypto community and the traditional investment markets communities have been pushing to the opening of the crypto assets to the traditional markets in the form of ETFs. The approval by the SEC has been expected for a long time and
the disappointment that is being felt at the recent
criticism of crypto ETFs as a valid financial asset has been immense. While the final ruling is still delayed, many are confident that the SEC’s final ruling will be positive towards the cryptos.
All of this is in order to become more attractive to investors the scale of who the industry has never seen before. After all, the market hopes to be reinvigorated sooner, rather than later, and one of the best ways for this to happen is by introducing large
amounts of investment by Wall Street, high net worth individuals and large scale institutional investors. But, attractive and comfortable as the market may seem, there is only one thing that will be bringing these investors to the table in full force.
Wall Street being bearing
What seems a little disappointing, and something that many die-hard crypto men cannot face yet, is the fact that Wall Street will not be entering the markets any time soon. The markets were attractive a year ago, in the beginning in 2018, when cryptos seemed
to be growing indefinitely, to points unprecedented before. That is when the big investors got interested, and the same thing needs to happen now, before the interest in the market returns.
The big investors are lovers of stability. While the real money is made with volatile assets, what the investors love the most is the sense of control they have over their assets. They know that when trading stocks, they can predict the rise and fall of
their value simply by how the performance of the company the stocks they bought from has been. Cryptos are simply too scary for Wall Street. They offer no real way of knowing when the surge or the fall is going to happen. The market seems to follow some kind
of whimsical chance and there are no patterns or formulas they can apply to it that will allow them to determine whether they will be making a profit any time soon.
This is why the crypto industry needs to stop making itself comfortable for the large scale investor. These people will only be entering the market once they are confident that there is a certain level of security associated with the digital assets. A level
of security that guarantees them the security of the millions of dollars of capital that they want to invest.
This is why the actions of Binance should be an example that the industry should go by in the future. The true drivers of the market have been and will always be those retail traders who have believed in the industry from the very beginning. Those who have
been hoping for a decentralized financial system.
The only thing that the industry can guarantee for itself is an influx of new traders into the market, those who will be able to utilize the coins in their every day lives by remaining protected from the tracking of their funds, the participation of intermediaries.
The services that need to be offered should not be investor-oriented, but user oriented. This is when the true surge of value will happen and this is when the large scale investors will get interested as well.