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How Crypto and Blockchain Can Benefit Institutional Investors

Feb 05, 2019 at 13:36 // News

Grayscale is one of the biggest institutional holders of Bitcoin (BTC) with a total of $797 million Assets Under Management (AUM) at the end of last year, down from a high of more than 2.8 billion, Medium reports.

Looking at the data, one could think that various institutions are seriously withdrawing their BTC holdings, however, one needs to first factor in the price reduction. The number of BTCs that are owned by Grayscale in the BTC Investment Trust has for long been soaring up to more than 200,000 BTCs.   

Decentralization Benefits   

The end of last year saw great institutional news from Bakkt, NYSE-affiliated establishing custodial and trading facility, up-for-approval BTC exchange-traded funds (ETFs) and massive 401K retirement plan service providers like Fidelity setting up digital currency trading desks. This year has registered some delays and even more effort in the field of crypto.   

A large number of cryptocurrency fanciers and investors are greatly enthusiastic about a significant price appreciation related to the surge in institutional investment and opportune for potent investors.   

There are three important things to discuss which are different and separate from the price: Censorship resistance; Trustless transactions; and Verifiable history. They are major benefits which come with decentralization and also being pioneered by cryptos.   

Generally, all digital currencies which want to see the ecosystem flourish, will have variable degrees of decentralization and also maintain the three aforementioned properties. Basing on what is happening in the institutional space, mixed reactions arise, for instance, are users ready to lose the whole purpose which the cryptocurrency ecosystem was institute on?   

Censorship Resistance   

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