Fireblocks – Co-Founder & CEO Michael Shaulov & VP Rob Salman on Digital Asset Security
Fireblocks Platform Clients Transferred More than $ 150 Billion to Cryptocurrencies
European institutional investors invest in cryptocurrencies
Potential Digital Euro Launch Promotes Digital Currency Acceptance In Eurozone
Interest in cryptocurrency investments from large investors is constantly increasing
Fireblocks digital asset platform announced that its institutional clients have transferred over $ 150 billion in cryptocurrencies to avoid dollar inflation and asset depreciation.
Institutionals prefer cryptocurrencies
Fireblocks, a company that provides cryptocurrency investing services to its institutional clients, said that $ 150 billion has been converted into cryptocurrencies. Fireblocks’ clients today include exchanges, credit bureaus, banks, OTC offices, liquidity providers, and hedge funds. To meet the growing demand for cryptocurrency investment, the company decided to open two more offices outside of London. They will be based in France and Germany.
“There is increased institutional interest in the EU as new regulation brings clarity on how to operate in the digital asset space. We are delighted to expand our presence in the region, ”said Michael Shaulov, CEO of Fireblocks.
This interest of institutional investors in Europe can be attributed to a number of factors. First, earlier chapter ECB Christina Lagarde has already announced that the EU is considering creating a digital euro that can be used in conjunction with the fiat euro.
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Secondly, the European Union has taken steps to adopt cryptocurrencies in the region. In September, the EU executive presented for discussion rules providing legal advice and educating corporate investors about the transition to cryptocurrencies. This year alone, many new consumer-focused crypto products have emerged, such as cryptocurrencies credit and debit cards and systems that allow providers to convert cryptocurrencies to fiat, indicating market growth and new opportunities for participants..
On the other hand, the EU is tightening requirements for cryptocurrency users in order to thwart money laundering attempts. For example, from January of this year, all exchanges and companies that work with digital currencies and are registered in the EU must enter a mandatory verification procedure and pass KYC for their clients.
All these factors influence the early adoption of cryptocurrencies by both retail and institutional investors around the world..
Bitcoin becomes the main investment vehicle
The coronavirus pandemic and the third halving Bitcoin halving cuts the number of new coins created and earned by miners in half. This happens approximately every four years and … More bitcoin has contributed to increased investment in cryptocurrencies by institutional investors. Investment companies predict the influx of institutions into the industry by the end of the year. For example, Michael Sonnenshine, the managing director of Grayscale, which owns $ 4 billion in cryptoassets, said that the company’s bitcoin investment fund has grown by $ 2 billion since April this year as of June 2, 2020..
In August of this year, institutional investors increased their investments in bitcoin futures. In early August, open interest in Bitcoin futures on CME (Chicago Board of Trade) reached a new high of $ 841 million. Charles Boward, vice president of Quantum Economics, emphasizes that back in July, open interest in BTC futures on CME was $ 365 million, and in August it crossed the 800 million mark, which is equivalent to an increase of more than 100%, and this is direct evidence of a growing demand from institutional investors.
Recent research by Grayscale Investments also shows that interest in cryptocurrencies from institutional investors has increased significantly. According to the data presented, this year the interest of investors in military-technical cooperation has grown significantly. 55% of respondents in the US indicated their desire to invest in cryptocurrency. For comparison, in 2019, only 36% of respondents were ready to invest in bitcoin.
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