Number of institutional investors in 2019

In spite of the 2018 downfall in the cryptocurrency market, blockchain technology is still a prominent investment opportunity for anyone with a sheer understanding of blockchain innovations. The current bear market is by no chance reflecting the actual view of institutional investors. An early 2019 survey on the amount of investment capital being poured into the crypto market is on the uprise, despite contrary predicuprise.

Hedge funds, pension funds, and institutions with high investment capital are considering digital assets as viable long term investment opportunities. Studies and executive reports on investor perception on blockchain technology, highlight the fact that cryptocurrency presents higher value due to their dual attribution of an asset class as well as infrastructure. Their complex attributions represent an interesting prospect for investors, who are allocating their current resources on researching the long term implications of digital asset investment, as well as on the impact of blockchain technology over the next 20 years.

The current investor emotion is neutral, in the sense that despite the promising technological advancement proposed by blockchain technology, the entire industry still presents a number of risks for investors. These risks cannot be justified nor rationalized through existing models. A survey by the Global Blockchain Business Council (GBBC) emphasizes how the lack of regulation is the main obstacle for a higher increase in institutional investments.

What is already clear is that investors are actively seeking information on blockchain technology as well as the cryptocurrency market, to educate themselves on the opportunities and risks of the current market. Moreover, in order for the cryptocurrency market to success and see a higher influx of capital being poured strategically into the project, the entire ecosystem requires global governmental approval and regulation. It is only a matter of time before the U.S. Securities and Exchange Commission (SEC) will begin establishing a regulatory framework that would dictate the future of cryptocurrency.

Amidst the regulatory implementations, institutional investor communication actively addresses the need to consider cryptocurrencies as a realistic and viable investment opportunity in the near future. The adoption spike in institutional investment entering the market is active governmental involvement and a regulatory process. Despite the increase in institutional players in the current market in 2019, even more, investors are eagerly waiting on the sidelines.