Institutional Investors Buy $200M Worth Of Crypto Per Week: Coinbase
Institutional investors are buying more crypto these days than ever according to Brian Armstrong, the CEO of Coinbase when discussing whether the institutions will adopt cryptocurrencies soon enough as we are reading today in the latest cryptocurrency news below.
Armstrong talked about institutional investors in the crypto space on Twitter saying that the question whether the institutional investors are investing in crypto is finally answered. Coinbase is seeing now millions of dollars per week from major financial institutions according to the reports. The main problem that is cited by the institutions that want to get Bitcoin and cryptocurrencies is the question of custodianship. Getting a hardware wallet is always a good idea for an every-day user that has about hundred dollars invested but when it comes to huge financial institutions, they are willing to invest thousands and millions so with these numbers much more care has to be practiced in the storage of the coins. Armstrong noted:
â€˜â€™Whether institutions were going to adopt crypto or not was an open question about 12 months ago. I think it’s safe to say we now know the answer. We’re seeing $200-400M a week in new crypto deposits come in from institutional customers.â€™â€™
Most of the financial institutions donâ€™t have the infrastructure for a robust security system with the needed tools to safeguard the coins they are responsible for. The issue made a way for companies such as Coinbase and Xapo to offer custodianship to the companies looking for a safe way to invest huge amounts in Bitcoin or other altcoins. Coinbase Custody is currently the largest custodian of cryptocurrencies and they officially launched their services in July last year so now their customer base is reaching up to $1 billion in assets. With Bitcoinâ€™s bull run earlier this summer, many fence-sitters are now ready to go into the market and invest. Coinbase now controls over $7 billion in assets and the trend seems to be continuing.
The biggest issue with crypto adoption as we read in the coming altcoin news at the moment is the lack of infrastructure surrounding the payment networks. Many companies such as Coinbase that are creating a framework that will allow the financial and institutional investors to easily use cryptocurrencies, will foster the next wave of adoption which will allow more people to take back control of their finances and enjoy the economic freedom.
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