If you still have no idea about the level of demand for investment in the crypto sphere from Wall Street, take a look at the progress of offering debt obligations of the Coinbase exchange for its own financing.
Their issuance volume recently climbed from $ 1.5 billion to $ 2 billion, as large investors placed orders for more than $ 7 billion. At a recent SALT Conference, Coinbase’s head of institutional sales, Brett Tejpohl, talked about what the company sees in its customers’ sentiment regarding crypto.
Note that the largest American cryptocurrency exchange Coinbase has been frequently in the news lately. The reason for this is problems with the US Securities and Exchange Commission, which expressed dissatisfaction with the investment instruments on the platform.
In this regard, the head of the department, Gary Gensler, even admitted the possibility of introducing new sanctions against the trading floor.
Who Wants to Buy Cryptocurrencies?
It turns out that the attention of large professional investors is attracted not only by Bitcoin, but also by other coins, as well as crypto startups. Here is a quote from Tejpol, in which an expert shares his vision of the situation in the digital asset industry. The cue is from Decrypt .
The bright light of new opportunities for institutions is shining better than ever. And it’s not just about Bitcoin.
That is, large investors are now looking not only towards Bitcoin, but also other large coins, which are already working and useful projects.
Tejpol divides Coinbase investor inquiries into four categories. The first is simple direct investment in cryptocurrency. According to him, about 75 percent of large clients of the exchange own not only bitcoins : of this group, about a quarter hold at least five cryptocurrencies in their portfolio.
The second category is investment in crypto-related businesses and the infrastructure that Coinbase has to offer for it. The third category is stablecoins, coins whose value is tied to national currencies due to the direct provision of bank reserves or smart contract algorithms . Finally, the last category is the area of decentralized finance and unique NFT tokens, which were at their peak in late August.
The expert continues.
There has been a huge surge of enthusiasm for everything about unique tokens, from art to sports.
As a reminder, we have published a lot of material about NFT tokens, including their purpose, features, and even instructions for selling. You can get acquainted with it by the link .
Glenn Barber, head of sales for the Copper.co platform, added his comment to Tejpol’s statement. Here is a quote from him.
Digital assets are a huge capital accumulation opportunity for the next generation. And I don’t want all this to be perceived as an ordinary desire of a handful of «crypto-kids» to sell their new product. This is a new global economy under construction at the moment.
Accordingly, the analyst recommends considering what is happening today as something broader than just the acquisition of assets with beautiful tickers. There are many more opportunities and future prospects behind crypto projects.
Brian Brooks, former CEO of Binance’s US division, pointed to Coinbase’s debt offering as evidence of growing investor demand, sources said. But at the same time – and as a clear limitation of opportunities for those who want to invest large capital in the crypt right now. Here is his line.
Today, most organizations do not want to own the cryptoassets themselves, and licensed investors cannot formally participate in the development of the decentralized finance ecosystem. How can they access direct investment in crypto? The answer is investing in debt obligations of a public company. This is something related to cryptocurrency, but in fact it is not. The issue of fully open investments for professional investors will be the subject of heated debate with regulators for the next year or two.
That is, cryptocurrencies are still not directly an «official option» for large capital investments. The reason is uncertainty in the asset class due to ongoing pressure from financial regulators. Once this last obstacle falls in front of the onslaught of demand from those who want to invest big money in Bitcoin and altcoins, the capitalization of the crypto market can add several more trillion dollars in a very short time.
We believe that while cryptocurrencies are really not a full-fledged asset for large massive injections of funds from popular companies. To be sure, some have already contacted the digital coin niche, but most still doubt them. And the longer these doubts continue against the background of normal market performance, the more actively global giants will join the crypto investment race in the future. At the very least, this scenario seems logical.