As the cryptocurrency sector is currently going through a bullish wave, as evidenced by the fact that Bitcoin (BTC) exceeded its high value of $ 1,982 earlier this month, causal and institutional investors around the world are showing greater interest now. In a growing sector. For example, on December 3, S&P Dow Jones announced that it intends to launch more crypto indices and will offer 550 coins next year.

S&P Global will jointly host the aforementioned shows with CME Group and News Corp. As part of a press release announcing the launch, S&P DJI mentioned Bitcoin and other well-known digital currencies such as Ether (ETH) and Bitcoin Cash (BCH). Part of an attractive New Asset Class.

S&P DJI also said that it will work alongside blockchain data provider Lukka to launch the aforementioned indicators. As a result, some in the crypto community believe that the industry has finally made continuous incursions into the economic mainstream. Stephen Stoneberg, Bittrex Global’s CFO, told Cointelegraph that while the announcement is certainly welcome, the mass adoption threatens:

“This is a continuation of the current trend, not a turning point. By placing the risk of crypto assets in the form of a traditional ETF, this should provide additional access points to the cryptocurrency market for ordinary investors. It will compete with the only high-cost BTC products that currently exist for this audience.”
However, Douglas Borthwick, Marketing Director for Cryptocurrency Exchange INX, took an alternative view that while cryptocurrency certainly occupies an important place in the economic mainstream, it still has a long way to go. He added that “cryptocurrency” is not only “Bitcoin”, but offers much more than that: “There are many denominations these days that fit with“ cryptocurrencies. ”It definitely left a lasting impression. But this impression is still questioning everything related to In the future. ”

However, the aforementioned move by S&P DJI demonstrates a clear commitment by the major players to using Bitcoin and other digital currencies. Earlier this month, the value of the Grayscale Bitcoin Trust soared at a premium of more than 30% on December 3 and was a clear indication of increased institutional demand for the cryptocurrency.

Institutions have advantages
Stoneberg said that S&P DJI’s latest move is mainly about trading digital / token assets in the form of a conventional exchange-traded product that trades during normal trading hours. Simply put, it is a way to obtain institutional participation funds indirectly in the cryptocurrency space – a process of convergence between traditional financial and cryptocurrency markets that will likely take several years.

On this occasion, Anton Churyumov, founder of Obyte, a distributed ledger based on targeted non-periodic graph technology, told Cointelegraph that organizations will always track whatever brings them and their clients money, adding:

“With crypto indices, the asset class is better recognized and easier to sell to clients. Most importantly, with DeFi, cryptocurrency has a wide range of tools that attract different investors, for example, there are now + stable currencies for more conservative investors.”
Jack Tao, CEO of Phemex, a cryptocurrency exchange led by former Morgan Stanley executives, thinks it won’t be surprising soon to see an explosion of new services and products that will make this area even more attractive to the mainstream financial sector: “I’m pretty sure That these giants would not allow the crypto train to pass. This is just the beginning, and I expect to see more funds and investments soon. ”

Will FOMO win?
As the cryptocurrency continues to rise in prices in the long run, it is worth checking whether institutional investors will pick up on the FOMO cryptocurrency – fear of losing it. In this regard, Sarah Austin, content manager at Kava Labs, a decentralized finance company, told Cointelegraph that according to sources, the over-the-counter tables have seen significant influxes from financial institutions.

Related: PayPal’s childish steps in cryptocurrencies don’t temper the hype

Not only that, as regulation has become more suited to the cryptocurrency market, and since many big players like PayPal, Square and MicroStrategy are broadcasting the embrace of the asset class, he argues that the increased interest has a solid foundation. Chris Norris, Corporate Affairs Head at Electroneum, Cointelegraph:

“I think in the future we will see the same FOMO from institutional investors as we did from retail investors in 2017, when the bitcoin and cryptocurrency market reached an all-time high. However, the main difference here is that the new asset class is emerging and institutional recognition.

Source: CoinTelegraph