Galaxy Digital’s Michael Novogratz believes that the crypto market is set to go on another bull run in 2019. Solutions from Fidelity Investments, BitGo and Bakkt will undoubtedly aid this growth.
This comes after a turbulent year for the sector which saw a lot of downward price movement.
He believes that the increasing number of financial institutions looking to invest will contribute handsomely to a market fightback.
Fidelity Investments Involvement in Cryptocurrencies
Fidelity Investments is developing a new subsidiary which focuses on crypto investing, known as Fidelity Digital Asset Services (FDAS).
Most of the focus will be on cryptocurrencies, offering trading execution, dedicated client service and asset custody.
In the beginning, these products will be only usable by their institutional clients. They do have more than 13,000 of these clients, so this is still a significant event.
Novogratz believes that a lot of Fidelity’s competitors will see how well this new subsidiary performs and will attempt something similar. The fear of missing out (FOMO) that was prominent in the retail crypto space in 2017 will be evident among institutional investors in 2019.
Greater Cryptocurrency Stability
He went on to note that the upcoming custody solutions from the likes of Goldman Sachs and Bakkt will make crypto investing appear to be a lot more stable. BitGo is already offering this type of custody solution to its customers.
However, it will take some time for these institutions to enter the market. While the solutions may be available, these institutions still need to conduct their due diligence.
On this point, Novogratz elaborates: “Fidelity announced their business today and it’ll probably be up and running in January, or Q1 [of 2019]. And then you have to run some water through the pipes. So my guess is you will start seeing institutional flows into pure crypto assets in late first quarter or early second quarter.”
If it materializes as Novogratz predicts, it will be an exciting year for the crypto sector in 2019. Large sums of money entering the space will work wonders for confidence in the market. It will also help to exponentially increase the levels of adoption of cryptocurrencies.
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