With individuals, the decision to invest in cryptocurrencies is a personal one and thus relatively easy to make. For institutional investors, this decision has to be backed up by hard evidence that a return on investment is almost close to 100%. This has made some institutional investors fear to invest in digital assets due to their high volatility. But they need not to worry anymore. Coinbase, the leading cryptocurrency exchange in the U.S has launched 4 new products targeting institutional investors.
The 4 new products are; Coinbase prime, Coinbase custody, Coinbase institutional coverage group, and the Coinbase markets.
According to Adam White, Coinbase V.P and G.M, the new products will go a long way to “unlock $10 billion of institutional investor money sitting on the sideline. We’re seeing a rapid increase in attention awareness and adoption in the cryptocurrency market”
On why they have decided to create these new products, Adam noted that “We heard that loud and clear” referring to institutional investor’s need of products that are specifically tailored for them.
As reported by CNBC, the Coinbase custody package will be Coinbase’s way to be a custodian of investor funds to which it’s likening it with the insured fiat currency stored in banks. Coinbase prime will be a separate platform for trading Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
Additionally, the Coinbase market package will give access to Coinbase’s products and liquidity from a central point.
“Coinbase Institutional Coverage Group was designed for “white glove” customer service that institutions like banks are used to. The group will be run out of the New York City office, and will help bring on board new clients and sell the service to additional investors looking to get into crypto” noted CNBC.
With such a serious target on institutional investors, Coinbase will have two separate interfaces, one for retail investors and another one for institutional investors.
As more hedge funds crop up faster than they did some years back, for example, in 2016 only 20 cryptocurrency hedge funds existed compared to 245 present today, more firms in Wall Street are slowing warming up to cryptocurrencies.
Do you think the 4 new products targeting institutional investors will help in luring them to the cryptocurrency market?
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