Hu Liang, co-founder and CEO of Omniex, is well acquainted with digital payments and corporate investment. During an interview, he told Cointelegraph that he does not see current regulations as an obstacle to investing in blockchain or cryptocurrency.

Omniex is an independent institutional investment and trading platform built specifically for digital assets. The company works with stock exchanges, managers and leading institutions for investors accredited to trade cryptocurrencies. He notes that there is a growing interest in digital assets in the investment field.

In a conversation with Cointelegraph, I explain why this is happening and how digital payments can develop in the near future.

Tingbing: Why are institutional investors interested in the investment area in cryptocurrencies despite regulatory barriers?

Hu Liang: I would definitely not describe the current regulations as an obstacle. Regulators are trying to understand the crypto space at the moment. Looking at emerging markets, this is not an easy task. In fact, the recent announcement by the OCC in the United States on traditional banking institutions’ cryptocurrency custody services is a major step forward for all investors.

Institutional investors are interested in cryptocurrencies for several reasons. They are interested in the high potential as a long-term asset. They care because it is a great trading tool. At the same time, many cryptocurrency and digital assets have a really favorable point of view, whether it is a payment method, a payline or a wide range of decentralized financing options. Bitcoin in just ten years showed that the cryptocurrency was a flexible asset class.

“So, put it together, the opportunities the cryptocurrency has already shown, along with future opportunities, make it a very attractive growing asset for institutional investors of all kinds.”

Furthermore, the recent global pandemic has only increased interest. One of the proven uses of cryptocurrencies, especially when it comes to Bitcoin, is as a store of value. Since global quantitative easing is the most important monetary policy tool to combat the crisis, many traditional investors are diversifying their portfolios and securing themselves with cryptocurrencies. This is an exciting time, and we see regulators working with the industry.

TP: What does the average institutional portfolio look like? Are they primarily interested in putting their money in bitcoins or various digital currency groups?

HL: We have institutional customers in various forms. Just as portfolios can be varied in a well-researched market such as stocks, so is the world of cryptocurrencies. There are a number of institutional funds that focus on acquiring just one asset, such as Bitcoin or Etherum.

In these cases, they focus on the long-term potential of the asset increase and provide a means that makes it easier for the institutional investor to have these assets. Crypto asset collections are not easy to maintain and are a tool for storage and security. Owning a tool like Grayscale Investment Trust is thus an easy way for regulated organizations to access cryptocurrencies.

However, most cryptocurrency wallets have more than one asset. Some focus on capital letters, others focus on smaller symbols, and a lot of focus on capital symbols, weighted by different risk factors. It is also important for you to understand that there are different patterns in addition to ownership of assets.

For example, a portfolio may contain five assets, but it may behave very differently than another portfolio with the same five assets, depending on trading style or strategy. A strategy can hold these assets continuously for weeks, months or even longer. Others can adjust their meals weekly or daily.

TP: Some people still claim that the game theory model is still used in Bitcoin trading, which causes market manipulation, so does this prevent institutional investors from entering the crypto space?

CL: There are many trading models and strategies. This also applies to fixed income, shares, foreign currency and cryptocurrency. The fact that many organizations trade in the same assets is no problem. This is a daily occurrence in the stock market with small and large stocks.

“If you know how the market behaves, do not be surprised. Use the right model and method to attack and defend. So I do not think this is a barrier to entry. Volatility is part of the expected nature of investment and trading.”

Source: CoinTelegraph