The crypto industry experienced explosive growth this year with major coins such as Bitcoin (BTC) and Ethereum (ETH) setting new all-time highs as both institutional and retail investors flooded the market. An expert predicted that institutional involvement in the digital assets market to continue next year and even accelerate.
Genesis Trading head of market insights Noelle Acheson recently shared her outlook for the crypto market for 2022. The executive pointed out that institutional investments into the crypto industry have grown significantly over the past year.
“We expect the continuation of institutional growth,” Acheson said on CNBC Tuesday. “The institutional growth over the last 12 months has been astonishing.”
She added that institutional involvement in the crypto market is even likely to pick up next year. “We're seeing strong signs of that accelerating over the next year," Acheson said.
The executive explained that this institutional investment growth next year will come from “both through direct token investment and through investments in the crypto market infrastructure companies themselves.”
“We saw the birth of 65 unicorns, forty of which appeared this past year, in the past 12 months,” she added. “That’s an average of three a month, that’s quite astonishing.”
The low-interest-rate environment could also act as a catalyst for the crypto market’s growth. “That kind of investment in the industry directly in companies is likely to accelerate given the amount of money out there looking for return and also given the lower interest,” she added.
Another trend to look forward to next year is the diversification of the crypto portfolios among institutional investors. “A year ago, Bitcoin was all they like to talk about and may ETH if they are feeling really daring. But now many investors are bypassing the two major cryptocurrencies directly and going into the riskier but also higher return tokens that represent new technological advancements and cultural statements. The sector really has disassociated itself from just the market leader offering investors much more choices than they’ve ever had.”
Comment 2