Why Big Money do not want go crypto?
Institutional investors are almost sacred words in the world of virtual money, almost equal with the holy cow of the sacred decentralization. However, they are not exactly eager to dive into the crypto. However, nothing is set in stone, and this is slowly changing.
Larry Fink was not that found of crypto. In his words that was a “Money laundering measurer” or “highly speculative investment.” However, that has not stopped BlackRock from forming a workgroup to measure and evaluate uses of blockchain and cryptocurrencies. Such “Evolution of thought” is a clear indication of changes in the “heads” of big money. Evolution of such magnitude that was big enough to cause a small rise of the bitcoin and altcoin prices. However, Fink changed the tonality of this information with ease, in the interview with Reuters he stated that company intentions are different:
We are big students of the blockchain, but I don’t see a huge demand for the cryptocurrency, our clients are not interested in it.
There is a point to his words since unlike their counterparts at Goldman Sachs Group Inc. and JPMorgan Chase & Co, BlackRock Inc lacks infrastructure required for buying and selling crypto both in bitcoins and bitcoin futures.
Goldman Sachs Group Inc
This investing bank was always wary about crypto. However their view was not as negative as their counterparts, that kept calling it “tulips or even worse“. For example, Lloyd Blankfein, Goldman Sachs previous CEO, was saying that waving crypto off is plain wrong and all the negative feelings were created by the “Ignorance and lack of understanding.”
However, direct changes started with the David Solomon, new CEO of the company - known crypto enthusiast, known for speaking in favour of the cryptocurrency and said that bank has to evolve and they must adapt to the atmosphere.
"We are clearing some futures around bitcoin, talking about doing some other activities there, but it’s going very cautiously," said Solomon in his interview to Bloomberg "We’re listening to our clients and trying to help them as they’re exploring those things too."
Founder and one of the chairmen of the Citadel, Kenneth Griffin is not too keen on bitcoin from the day one. However he was not calling them an outright fraud, but most likely - a bubble. And according to his recent interview with CNBC, his opinion haven’t changed all that much.
“I don’t have even a single manager that is saying that we need to buy cryptocurrency, not a single one” but he also added that company was seriously considering getting into the crypto, but Griffin decided against it since he was having a hard time investing “In a product that he doesn’t believe in”.
It is curious that Kenneth predicts big future of the blockchain as technology, but crypto-currency is “An answer, looking for a problem” and there is no real need for them, because “ there is a fiat currency in place and the end you’ll have to convert to pay taxes or pay for governmental services”.
In this whole list Draper Associates and his head Tim Draper were within the rather classical Venture capital profile, Сome in early, raise the “top dog” and leave with the big prize. However - it all changed. An idea that Tim got from his colleague, that was talking about microtransactions in video games fascinated Mr. Draper, and his company ended up funding one of the first mining companies “Coin lab.” But- they were keeping fruits of their work on the infamous Mt.GoX.
When Mt.GoX took a dive - the “boom” was loud enough to drop the market by 15%. And that made Tim come up with a very reasonable idea “Well, that all folks” and think that it’s done for. But Bitcoin started to grow again the very next day, That left a heavy impression on him, and because of this, he jumped at the opportunity to buy bitcoins seized from the “Silk Road” leader. He bought 2000 bitcoins, 632 $ each. Again, the timing was off - this was just a couple of days before bitcoin plunged to the 180 dollars per coin level. But Mr.Draper saw an opportunity here and decided to “HODL” - play it in the long run. Because according to his predictions - bitcoin price was going to rise to the 10k$ per bitcoin.
He was right. And with that prediction - he earned not just money, but also a title of a visionary. Since then Mr.Draper is real evangelist when it comes to the all the things bitcoin and trusts them more than ever.
“Personally, I feel much safer with my Bitcoin then I do with my fiat currency in Wells Fargo. Wells Fargo gets hacked all the time, but no one has ever cracked the Bitcoin blockchain” said Draper in the interview to Forbes.
JP Morgan Chase & Co
For a long time, this bank had a super simple position on the matter - crypto is a fraud, end of the story. JP Morgan CEO James Dimon was tireless in constant slamming of the digital currency, warning everyone that “This is all is going to end really bad”. However - that hasn’t stopped JP Morgan Chase&Co from hiring renown British tech expert Oliver Harris, to research the strategy for the bank.
But despite all that movement - bank is staying at the “Let’s wait and see” pont. JP Morgan Chase&Co co-president explained it well within his interview to CNBC “Cryptocurrencies are real, but not in their current state” which somewhat suggests that bank is weighing up pros and cons before even thinking about diving into the crypto verse.
Winklevoss twins, a pair that is known for many things, But there is one thing - they are a milestone in the world of crypto. They are not just one of the first bitcoin billionaires, top shelf WASPs and overall good fellers. They are mavericks. Let’s say - charming rouges either, or wealthy fraudsters that siphoned $65 mln USD from Facebook but that is not the point here.
Their actions and name that brothers made for themselves cemented their second name in history of the cryptoverse. As owners of the Gemeni crypto exchange, crypto exchange with a signed partnership with NASDAQ, they are already among the undisputable heroes of the crypto. On the topic of skeptical views on the crypto one of brothers, Taylor explained that this is all to blame on the age and the fact, that someone’s brain just can’t cope with something that simply doesn’t fit in their system of values.
“Big money” are still waiting. Just volatility of bitcoin will make a good percentage of serious investors walk away, and we are not even talking about the of lack of clear legal framework within the cryptoverse. However, it’s slowly changing, and “big money” tide is coming, like an economic force of nature.
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