How Institutional Investment Will Change the Crypto Asset Market

Institutional investment has long headlined as the gateway to widespread crypto adoption. Beginning with bitcoin in 2009, cryptocurrencies continue to evolve in response to investor preferences. Utility tokens, security tokens, and most recently stablecoins are all on offer in the crypto market. Regardless of the application, each of these token iterations aims to bridge the gap between digital and conventional finance.

Although institutional adoption is on the horizon, not everyone sees it as a good thing. Let’s delve into the good and bad of institutional investment in the crypto market.

Several stakeholders in the crypto ecosystem are resistant to the arrival of institutional investors; there are typically a few reasons for this.

“…the process by which politically radical ideas and images are twisted, co-opted, absorbed, defused, incorporated, annexed and commodified within media culture and bourgeois society, and thus become interpreted through a neutralized, innocuous or more socially conventional perspective.”

Many believe that blockchain technology and cryptocurrency will be absorbed by institutional investors, dramatically altering its intended purpose.

Despite the arguments against institutional adoption, there are benefits for those that currently hold or intend to invest in crypto assets.

As institutional investors accumulate crypto assets, many with a finite supply, demand is expected to increase dramatically. In the long run, this increased demand and exposure will benefit early crypto adopters as prices rise substantially.

The institutional adoption of crypto assets is a complex undertaking. Although many are poised to benefit from increasing crypto demand and subsequent market exposure, several concerns remain. Those who support the founding ideology of bitcoin and other original cryptocurrencies remain leery of centralized institutions exploring the technology. And as many institutions explore blockchain and crypto, the possibility of recuperation is concerning for some.

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