Market

69% of Institutional Investors Eye Crypto Expansion

Published

5 months ago

August 29, 2024

Coin2049 Newsletter

Research commissioned by OKX exchange discovered institutional investors view entry into the digital asset space as inevitable. The report cites a “growing consensus” among institutional investors that digital assets like cryptocurrencies, NFTs, and tokenized private funds are critical to portfolio asset allocations.

Institutional interest in the crypto space continues to increase, partly inspired by the advent of Bitcoin ETFs (exchange-traded funds) in the US, which delivered BTC to Wall Street.

Institutional Investors Find Digital Assets Inevitable

OKX’s report cited responses from TradFi titans like Citi, Al Mal Capital, Skybridge Capital, and VanEck, among others. Based on the study, institutional investors intend to ramp up their allocations to crypto, leveraging a range of investment strategies.

The low correlation between digital assets and traditional assets fuels institutional interest, making them valuable for diversification. With the growing availability of investment vehicles such as ETFs and derivatives, institutions are increasingly optimistic about integrating digital assets into their portfolios.

“Approximately 51% of investors considering spot crypto allocations, 33% considering staking of digital assets, and 32% considering crypto derivatives. 69% of institutional investors anticipated increasing their allocations to digital assets and/or related products in the next two to three years,” read the report.

Institutional Investors Plan to Ramp Up Portfolio Allocations, Source: OKX research — Institutional Investors Plan to Ramp Up Portfolio Allocations, Source: OKX Institutional

Institutions currently allocate an average of 1% to 5% of their portfolios to digital assets, depending on their risk tolerance. They anticipate increasing this allocation to 7.2% by 2027.

This growing interest is driven by the emergence of institutional-grade custodians and the availability of crypto ETFs. As the digital asset ecosystem matures, traditional investors are expected to work more closely with digital-native custodians.

“As the institutional digital asset custody market grows, such criteria security, regulatory compliance, and efficiency, as are expected to become more refined, further facilitating institutional adoption of digital assets. According to our research brief, the institutional digital asset custody market is projected to experience a compound annual growth rate of over 23% through 2028, and 80% of traditional and crypto hedge funds that invest in digital assets use a third-party digital asset custodian,” OKX Chief Commercial Officer Lennix Lai told BeInCrypto.

Institutional investors are also focusing on understanding and adapting to changing regulations to align with best practices. They are staying updated on changes in key financial centers to ensure a more secure market. The alignment of local and regional regulations, like the MiCA framework in Europe, is helping to make global adoption of digital assets more achievable.

Crypto Narratives Drawing Institutional Interest

Indeed, institutional interest in crypto markets continues to grow, driven by developments such as crypto ETFs, Decentralized Physical Infrastructure Networks (DePIN), and Real-World Assets (RWAs). The market capitalization of DePIN is approaching $19 billion, with key projects like Render and Bittensor leading the sector.

Experts believe that DePIN and RWA trends will fuel the next wave of crypto adoption. Institutional investors, including Andreessen Horowitz, are also making notable moves in this space.

“We’re seeing a promising trajectory towards the tokenization of assets like stocks, bonds and even real estate. This emerging trend has the potential to dramatically increase the liquidity and accessibility of these asset classes. Imagine being able to trade a fraction of a commercial building as easily as you buy shares of a public company today — that’s the kind of democratization of finance we’re looking at,” Lennix Lai shared with BeInCrypto.

Tokenized RWAs have become one of the most prominent trends in 2024, bridging the gap between traditional and decentralized finance. The tokenized RWA market, valued at over $10 billion, caters to institutional clients looking for secure banking partners and custody solutions for their crypto assets.

Blockchain technology, through asset tokenization, offers a safer alternative to less secure exchanges or wallet providers. This process also streamlines operations and creates new opportunities for the financial sector.

“While it’s too early to say if tokenized assets will become as liquid and accessible as traditional equities and bonds in the near term, the long-term potential is immense. As blockchain technology continues to mature, regulatory frameworks evolve and digital security practices improve, we expect to see institutional investors becoming increasingly comfortable with integrating tokenized assets into their portfolios,” Lai added.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

Will It Smash Another ATH?

Published

41 minutes ago

January 22, 2025

Coin2049 Newsletter

Este artículo también está disponible en español.

Bitcoin price started a fresh increase above the $104,000 zone. BTC is consolidating above $105,000 and might aim for a new all-time high.

Bitcoin started a decent increase above the $102,500 resistance zone.
The price is trading above $104,500 and the 100 hourly Simple moving average.
There was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase if it stays above the $103,500 support zone.

Bitcoin Price Regains Traction

Bitcoin price started a decent upward move above the $102,500 zone. BTC was able to climb above the $103,500 and $104,000 levels.

The bulls even pushed the price above the $105,000 level. Besides, there was a break above a connecting bearish trend line with resistance at $104,000 on the hourly chart of the BTC/USD pair. The pair surpassed the 50% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low.

Bitcoin price is now trading above $104,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $107,000 level. It is close to the 76.4% Fib retracement level of the downward move from the $109,112 swing high to the $100,114 low.

The first key resistance is near the $107,500 level. A clear move above the $107,500 resistance might send the price higher. The next key resistance could be $109,000.

A close above the $109,000 resistance might send the price further higher. In the stated case, the price could rise and test the $110,000 resistance level and a new all-time high. Any more gains might send the price toward the $112,500 level.

Downside Correction In BTC?

If Bitcoin fails to rise above the $107,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $104,500 level. The first major support is near the $103,500 level.

The next support is now near the $102,800 zone. Any more losses might send the price toward the $100,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $104,500, followed by $103,500.

Major Resistance Levels – $107,000 and $108,500.

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Market

Trump’s $500 Billion Stargate Venture Sparks AI Crypto Boom

Published

2 hours ago

January 22, 2025

Coin2049 Newsletter

AI tokens surged on Wednesday after President Donald Trump unveiled a new joint venture to invest up to $500 billion in artificial intelligence infrastructure.

The partnership involves major players such as OpenAI, Oracle, and SoftBank and will form a new entity called Stargate.

Market Focuses on AI Coins as Trump’s Stargate Initiative Gains Traction

The Stargate Project will invest $500 billion over the next four years, building new AI infrastructure in the US. The venture will focus on developing crucial data centers and the electricity generation required to power the AI sector.

The announcement has already had a noticeable impact on the broader market, particularly in AI-related cryptocurrencies. Following the news, the market capitalization of AI tokens surged by 9%, reaching $45.83 billion at press time, according to CoinGecko.

In fact, the market cap of AI agent tokens alone rose by 13% to hit $14.9 billion.

AI agent tokens, such as Virtuals Protocol, AIXBT, and AI16Z, saw impressive gains. Virtuals Protocol rose by over 13% in the past 24 hours, while AI16Z experienced a remarkable 36% increase. AIXBT token rose by 27% over the same period.

The surge in AI tokens reflects a broader shift in market interest as investors move capital towards more “sentient” tokens.

“Capital is rotating back from static memes to sentient coins,” AI researcher S4mmy commented on Twitter.

The analyst added that Fartcoin and AIXBT are sustaining their “mindshare dominance,” but face declining market caps after a heated run. Commenting on Virtuals Protocol, he said it continues to solidify its position as a backbone of the Agentic infrastructure.

Moreover, analyst CyrilXBT said he believes “AI will create generational wealth in 2025.”

“People said Bitcoin was a joke. People said AI agents are a gimmick. Guess what else they’ll say? ‘Why didn’t I listen when generational wealth was staring me in the face?,” CyrilXBT commented.

The shift towards AI is particularly interesting, given the trend of investments a few days back. Capital was flowing into Donald Trump-related tokens, such as TRUMP and MELANIA, which have seen significant volatility.

However, BeInCrypto reported that smart money traders are now focusing on AI tokens after the hype around TRUMP faded. According to data from Nansen, a substantial amount of VIRTUAL, FARTCOIN, and AIXBT tokens are held by smart money.

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Market

Will an Upside Break Spark a Surge?

Published

3 hours ago

January 22, 2025

Coin2049 Newsletter

Este artículo también está disponible en español.

Ethereum price is struggling below the $3,500 resistance while Bitcoin gains. ETH is consolidating above $3,150 and might aim for an upside break.

Ethereum failed to gain pace for a close above $3,400 and $3,450.
The price is trading above $3,300 and the 100-hourly Simple Moving Average.
There is a key contracting triangle forming with resistance at $3,355 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start another increase if it clears the $3,400 resistance level.

Ethereum Price Aims Key Upside Break

Ethereum price started a decent upward move from the $3,200 level but upsides were limited compared to Bitcoin. ETH cleared the $3,250 resistance to move into a short-term bullish zone.

The bulls were able to push the price above the $3,300 resistance zone. Besides, there was a clear move above the 50% Fib retracement level of the downward move from the $3,445 swing high to the $3,203 low. However, the bears are still active below $3,400.

Ethereum price is now trading above $3,300 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level or the 61.8% Fib retracement level of the downward move from the $3,445 swing high to the $3,203 low.

There is also a key contracting triangle forming with resistance at $3,355 on the hourly chart of ETH/USD. The first major resistance is near the $3,400 level. The main resistance is now forming near $3,445.

A clear move above the $3,445 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,720 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $3,400 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250.

A clear move below the $3,250 support might push the price toward the $3,200 support. Any more losses might send the price toward the $3,120 support level in the near term. The next key support sits at $3,050.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,200

Major Resistance Level – $3,400

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