Bitcoin is skyrocketing, but did you recognize that the inflow of funds to crypto assets normally is accelerating?
On January 20, Ethereum, which has the second largest capitalization of crypto assets.
I said, “The” surge “of Bitcoin, in fact, the” great market value “will come in” 2022 “…! within the contribution, I introduced that the “big market” is coming with Bitcoin, but now i will be able to approach the trend of crypto assets apart from Bitcoin, that is, altcoin. Actually, we are able to see the scenario of the large market here yet.
What is the next big cryptocurrency?
The background to the increase in Ethereum is that the expectation for an upgrade to ETH 2.0, which is that the next-generation Ethereum.
The logic is that future upgrades may solve the scalability problem, and an outsized number of projects associated with DeFi (decentralized finance) are often expected to further increase the demand for Ethereum..
However, whether or not there’s such a fabric, the value won’t rise if there’s no actual buyer. viewing the buyers of Ethereum, i might wish to confirm the knowledge of Grayscale, the biggest crypto investment firm within the u. s..
The company may be a major investor in US crypto assets, and mainly institutional investors deposit funds with the corporate. Cryptocurrency-related investment firm assets under management announced on Twitter on January 14 are $ 27.7 billion, Ethereum is $ 3.4 billion (Bitcoin is $ 23.4 billion) .
Compared to the tip of December 2021, Ethereum has increased by 1.8 times thanks to the advantage of soaring prices. Institutional investors are commencing to invest in crypto funds just like the company, but investing in crypto assets is insignificant given the ratio of portfolios to commodities like gold.
It is necessary to regulate uncertain systems like regulations on crypto assets by financial authorities in each country and region, but i feel there’s still room for growth from the angle of latest investment destinations for institutional investors .
Institutional investors have begun to Maneuver
As a basic idea for asset conservation, as candidates for diversified investment, the standard investment targets of general financial assets are deposits, stocks, bonds, property, and therefore the like.
However, the movement of “alternative investment” to include non-traditional assets like hedge funds and personal equity into the portfolio has accelerated since 2000. The petroleum forward market, which became a significant market within the early 2000s thanks to the inflow of pension funds, is fresh in our memory.
From the attitude of investing in something useful, crypto assets looked as if it would be a sufficient investment target for institutional investors . once they really start shifting money, the inflow isn’t pretty much as good as individual investors. Bitcoin is usually remarked as digital gold, but the potential for inflows is that the same as within the oil futures exchange within the early 2000s.
Ethereum Futures begin!
Currently, the kinds of crypto asset funds announced by Grayscale are Bitcoin ($ 23.4 billion), Bitcoin Cash ($ 100 million), Ethereum ($ 3.4 billion), and Ethereum Classic ($ 100 million). , Horizon ($ 100 million), Lite coin ($ 100 million), Stellar Lumen ($ 909 million), Bitcoin Cash ($ 30 million).
On the opposite hand, there are some things to remember of in Grayscale’s fund information. Since the company’s fund invests in one form of crypto asset, the balance of the fund’s investment features a large effect on the value of crypto assets .
Currently, the data is being sent positively because it’s rising, but when the value plummets, looking only at the investment balance gives a negative impression.
Whether investment are flowing in or out is vital, but individual investors who are investing in crypto assets supported Grayscale’s information won’t be ready to read such detailed information.
I would wish to take care about the upset sales of individual investors (especially amateurs who are investing by taking advantage of the rising trend) supported such information .
Some people see the beginning of handling Ethereum futures as a positive factor, like the inflow of funds by further institutional investors, but not all investors who invest in Ethereum futures will furnish, and when futures trading starts within the high price range, It seems better to remember that there are quite few investors who are available from selling.
Ripple is finally …
I would also prefer to introduce another crypto asset that’s rising against the backdrop of expectations for upgrades. NEM (cryptocurrency is XEM, project is NEM)
has been suggesting an upgrade for several years .
Investors are a bit bored with chasing after repeated upgrades, but by upgrading from NEM announced in early 2021 to Symbol, it’ll be one-on-one for users who have crypto asset XEM. it’s expected that a brand new crypto asset XYM are granted.
The launch schedule for December last year has been postponed until February (initially December 2008, then January 2009, now February), and there’s an opening that it’ll be postponed within the future thanks to the circumstances to date. is dear. However, XEM, which encompasses a sizable amount of domestic users and high liquidity, will attract attention when the Symbol launch is imminent .
Finally, while Altcoin is that specialize in Ethereum and XEM, the trend of Ripple (XRP) , which the US Securities and Exchange Surveillance Commission (SEC) has determined to be securities, is additionally worrisome .