The CEO of leading blockchain wallet and technology company Blockchain Ltd, Peter Smith, has said that he expects more institutional investment to flow into the cryptocurrency industry.
In an interview with Bloomberg on July 20, 2018, the CEO discusses the immediate outlook for cryptocurrency markets. Smith believes improved regulatory clarity “that didn’t exist a year ago” will lead to positive price consolidation over the next quarter.
“I think we are seeing another slow consolidation in the market now, and we are likely to see a moderate but positive consolidation over the next quarter,” said Smith.
The CEO notes that everyday consumer investment is lower and the uptick right now originates from institutional investors. These institutional investors, however, need a more conventional infrastructure to encourage them.
Bitcoin will lead the markets
Institutional investors also appear to buy bitcoin first, he notes, which means bitcoin price is likely to continue to increase and outperform other cryptocurrencies in the next six months.
Smith recognized the risks, especially perceived by larger enterprises, which he predicts could take a further year to really get involved in the space.
“Yes, there is a lot of risks involved,” continued Smith. “I think it will maintain a pretty small part of people’s portfolio, particularly institutional side. That said, the crypto market is still pretty small. When you benchmark it against any major asset class, the crypto market, bitcoin itself, is still a pretty niche market.”
Blockchain Ltd, based in the United Kingdom, and owners of blockchain.com, boasts over 26 million cryptocurrency wallet users and transactions totaling $200 billion USD.
Part of Blockchain Ltd’s focus is on bringing institutionally-suited investment avenues to market.
On June 28, 2018, Blockchain Ltd launched a comprehensive institutional grade digital asset investment product titled Blockchain Principal Strategies (BPS). Targeted at “institutions, family offices, and individual investors,” BPS will provide a digital asset investment platform and over the counter (OTC) trading desk coupled with research and other services.
“The OTC desk also operates as a best-in-class matchmaker and direct counterparty to clients, executing trades and managing associated risk,” details Blockchain Ltd. “Our long standing position in the market and technical expertise allows for trading across major currencies and digital asset pairs.”
Blockchain Ltd will offer clients managed investment offerings including direct equity investments and access to early stage token offerings vetted by “Blockchain’s global network.”
Blockchain under attack
Security, said Smith in his interview with Bloomberg, is vital, and Blockchain Ltd is constantly under cyber attack via a number of methods. It’s clear Blockchain Ltd will need to demonstrate its obvious commitment to protecting investors.
To that end, earlier this week the company announced that it had hired ex-presidential bodyguard and former secret service special agent and senior official George Sax as its global head of security.
“We are one of the top targets in the world for security threats by virtue of our place in the crypto ecosystem,” said Smith.