Mike Novogratz Believes Institutional Investors Will Flood The Crypto Markets In a Few Years
Recently, there has been a lot of news regarding institutional players planning to pour billions of dollars in the crypto market. However, until now we have seen any little effects of this being actually translated into market movement. But Bitcoin bull and Galaxy Digital CEO Mike Novogratz continues to remain bullish on the crypto markets.
This week, during his keynote at the Blockchain Week Korea Novogratz talked about the future of digital currencies, the influx of institutional money in the crypto space, and the coming blockchain revolution.
Novogratz said as the crypto space and blockchain technology are getting mature and coming to the mainstream, more and more people are getting aware about this. He said that many young people are willing to start a business in this segment.
Novogratz said: “[When I founded Galaxy Digital Capital] The mission was to convert institutional investors to crypto, Now, when I meet a CEO or CIO, I am surprised at how much they know. Most have not taken the first step in participating, but they are doing a lot of work.”
In addition to North America, Galaxy Digital has also opened its offices in other parts of the world and especially Asian markets like Tokyo and Hong Kong.
While talking to The Street, Novogratz said that the first route of institutional money to flow in the crypto space will be through venture capital funds. He said: “Their first way of participating is going to be through venture-capital funds. Many of them are already participating because they’ve invested in Sequoia or Polychain or Benchmark or many of the other VC funds that invest in this area. The second step for them will be buying the coins and/or the ICOs themselves, but many of them are participating in the ICOs already through their venture investments.”
Mike Novogratz revealed a few names who have already started buying in the crypto markets. This includes Japanese tech conglomerate SoftBank, Tokyo-based investment giant SBI Holdings, and “many funds” in Hong Kong.
Novogratz also said that to ensure the mass adoption of digital currencies, there is a serious need to educate people in about their working and their different use cases. He said that for this to happen, there is still a long way to go. Novogratz said: “You won’t see mass adoption until the user experience does not feel like something new and that is still five to six years away.”
Novogratz said that in the coming two-three years, we can witness a huge investor participation. He said: “The bet I am making is that sometime in the next two to three years, a herd of institutions will come running into this space. Without that, we will be running in circles.”