To emphasize the importance of attracting institutional investors to the crypto world, the CEO of Binance, Changpeng Zhao, recently tweeted a question to his followers. The question was simple, and it asked what would happen if a fund like Fidelity allocates 5% of its portfolio to crypto space.
What happens when a fund like Fidelity allocates a mere 5% of their portfolio to crypto? Have you calculated how much that is? https://t.co/ljcZ4SjQnw
— CZ Binance ??? (@cz_binance) October 21, 2018
Considering the sheer amount that large funds contain, even a small allocation of 5% (around $350 billion) would be able to not only double but almost even triple the market cap of the entire crypto space.
https://twitter.com/cz_binance/status/1054059274987462656
Mike Novogratz Provides Support for BitGo
Evidently, such a large amount can only enter the crypto world through institutions and large funds that have been avoiding the cryptocurrency space for years. However, recent moves such as Mike Novogratz’s partnership with Goldman Sachs and BitGo might soon change the ecosystem.
Novogratz has been optimistic about crypto, or at least Bitcoin, for a large part of 2018. Until recently, he predicted large surges that would take BTC further than ever before. However, as the year slowly approaches its end, not much has happened. Instead, a few price drops have forced Novogratz to change his mind regarding his earlier prediction.
However, he did not express negativity towards the crypto market, and only days ago, he expressed his excitement regarding the partnership with cryptocurrency custodian BitGo Holdings Inc. So far, Goldman Sachs and Novogratz contributed around $15 million to BitGo’s fundraising, which collected a total of $57.5 million.
More institutional architecture. Excited to partner with @BitGo and @GoldmanSachs #theherdiscoming https://t.co/X49qYlReZ8
— Michael Novogratz (@novogratz) October 18, 2018
The fact that two companies with strong ties to Wall Street supported BitGo is expected to bring institutions to it, as well as numerous high profile customers.
Can Fidelity Attract Institutional Investors to Crypto?
It is easy to see how analysts predict Fidelity Investments’ association with crypto to boost the development of this industry. A sign that demonstrates the genuine long-term strategy of Fidelity is that the firm announced the launch of a new business that will allow institutional clients to access cryptocurrencies in a