This week, the cryptocurrency company Circle said that he noticed a significant spike in interest from institutional investors. According to CEO and co-founder of Circle, Jeremy Allaire (Jeremy Allaire) despite the fact that in may the cryptocurrency markets was on the decline, last month the company saw a 30% surge in interest from institutional clients.
16 Dec 2017 cryptocurrency markets fell more than 69%, and the last few months of 2018, the reins of course was «bears». However, during this period, many companies such as Coinbase, Bitgo, Circle, and others, opened the door for institutional investors. This week the firm has seen increased demand from institutional investors.
«In may, which was a difficult month, we have witnessed a sharp increase in the number of new unique counterparties,» explained
Aller during an interview this week. «Many institutional investors are considering exit to the cryptocurrency markets.»
Circle said that every month on its platform processes transactions for $2 billion. Allaire explains that before the advent of corporate clients Circle could not carry out extremely large orders from $100 thousand to $1 million in a high-frequency mode. Now, however, the Trade Circle can deal with these types of quick swaps. The company also emphasizes that the greatest interest show family investment firms and venture capital investment company. Circle notes that these types of customers increased the volume of transactions per day to 15 times compared to last year. Allaire believes that the industry is developing well. He said:
«Large institutional investors do not use a phone broker. They choose the electronic interface, and we’re turning it into a more traditional product. It is much faster and more flexible way of trading».
The last statement of the Circle follows the recent explanations of the company regarding how she selects digital assets for listing on its trading platforms. In addition, the company has published the form
for teams of developers of cryptocurrency through which you can apply for the listing of assets. Circle also outlined its position with respect to future branches of the block chain, forks and hands tokens (airdrops) that appear from the forks of the cryptocurrency sold the company.
«Because these events may vary and depend on the circumstances, we plan to assess the situation in each case. We are more likely to will support these events if they are planned, documented and they had been beforehand» — note
to Circle. «We will inform about our decision not later than 5 days after the «Notifications» section on the home page of the exchange and through emails to users who have money in the affected asset.»
The growing interest in cryptocurrencies among institutional investors was noted in the spring of this year. Then it was reported that almost 70% of the fall in the price of bitcoin at the beginning of the year has caused a new surge of interest in the cryptocurrency markets by institutional investors. In addition, according to informal research strategic companies with wall street Fundstrat Global Advisors, in April of this year, 82% of institutional investors believed that the low price of bitcoin passed.
Increased interest in «whales» have been seen as the cryptocurrency markets and traditional financial institutions. In may this year, British FINTECH company LMAX Exchange Group announced
about the launch of LMAX Digital – first cryptocurrency exchange for institutional investors, which will allow you to trade the five cryptocurrencies: bitcoin, ether, petkasem, lithinon and ripples. In addition, this spring the German Bank VPE launched
cryptocurrency platform for institutional investors.