Institutional Crypto Investors Flag Regulation a Risk and Reward for Bitcoin
Binance has published a report today, in which the crypto exchange revealed the market insights of its largest institutional and VIP clients. As a result, the participants of the research believe regulation is both a big risk and a key growth driver for the crypto industry.
In its Q2 2019 report named Institutional Market Insights, Binance has asked its 41 institutional and VIP client participants on what they believe are the top factors that could potentially contribute to the rise of the crypto industry.
The institutional investors ranked regulations – both global and local – as the top potential growth driver for cryptocurrencies, followed by Bitcoin ETFs and traditional brokerages like Fidelity and E*Trade offering crypto services.
In general, any development of auxiliary financial products (ETFs, options, regulated futures and brokerage services) could become significant growth drivers for the industry, Binance concludes.
Surprisingly, crypto initiatives from private companies like JPMorgan and Samsung are at the end of the list of potential growth drivers. Institutional investors even classified Facebooks upcoming Libra cryptocurrency – that has been a highly trending topic in the past few months – as a low growth driver for the crypto industry.
When they were asked about the largest risks for the crypto industry, institutionals have ranked technology failures – such as hacker attacks targeting cryptocurrency-related services – as well as local and global regulatory changes as the top negative factors.
While Tether – the stablecoin issuer that is currently in legal trouble with the New York Attorney General – is ranked as the third-largest risk for the cryptocurrency industry, Binance fin ...