How Institutional Investment in Crypto Will Benefit You
I was in high school when cryptos first showed up on the news.
It all had to do with the Silk Road and black-market transactions.
Despite the negative press on it, some people were sold on the legitimate uses of the technology.
My friend was one of these people. He acted as my guide on all things crypto.
This was helpful when I was curious about investing in bitcoin in those early days.
He offered me options such as mining it or going on exchanges like Mt. Gox and BitInstant.
Neither of these options appealed to me.
Mining seemed like a lot of work.
And Mt. Gox and BitInstant validated my fears by shutting down due to hacks and regulatory pressures.
At the time, I wished investing in crypto could be as simple and credible as investing in stocks.
2021 delivered on that wish in a big way.
Crypto Assets Under Management Exploded in 2021
In 2021 institutional interest in cryptos rose to historically high levels.
The year marked $9.3 billion in inflows into institutional funds. That’s a 36% increase compared to 2020.
This wasn’t just money flowing into existing trusts and funds.
Over 30 new crypto investment products launched during the year.
These products also expanded beyond bitcoin and Ethereum with the introduction of six new coins.
By the end of the year, the total crypto assets under management by institutional funds hit $62.5 billion.
That’s up over 800% from where it was at the end of 2019!
Institutional Interest in Crypto Is Great for the Average Investor
This is just the start of institutional interest in the space.
The SEC is currently in the process of evaluating 12 crypto ETFs.
And those are just the bitcoin-related products.
Even companies like Grayscale are waiting on SEC approval to change their bitcoin trust into an ETF.
Soon, gaining exposure to crypto will be as easy as buying an ETF that tracks the price of your favorite coin.
This will make crypto investments even more accessible to the average person.
More importantly, it will transform crypto into a legitimate asset class.
The SEC is set to deliver a decision on many of these ETFs by March.
Keep following us at Winning Investor Daily to find out which crypto ETFs may soon be available to you.
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