If you have been active in the cryptocurrency sphere in 2018, one recurrent theme you definitely would have encountered is the term institutional money. Whether this is a narrative or a dream remains to be seen, but the performance of the market so far has not reflected the bullish sentiment around cryptocurrency with which most began the year. It is everyone’s best guess when the institutional money will arrive, better yet what will propel the cryptocurrency markets to reach and if possible surpass the 2017 December highs. Progress in blockchain space this year has been nothing short of remarkable. The EU and a number of governments around the world have come in strongly in support of cryptocurrency. Cryptocurrency is easily the best performing asset class in the past ten years rising by margins as high as 10, 000x. For all the revolutionary impact, they are going to have, one cannot deny that such gains are what drive hype and demand. Especially now when there are few product ready usecases of the technology yet.
Two major reasons so far contribute to the space being the reserve of retail investors so far.
📌Firstly, the space is still under construction. It is still to early to definitely call which blockchain is going to stand out, the test of time, there are so many competing platforms. More and better projects are coming out each and every day, increasing the competition even further.
📌The other reason is the lack of regulation in cryptocurrency markets (bar Japan). There are misconducts in the space that go unpunished or certain loopholes being exploited by certain people that are non-existent in traditional asset classes. A lot of manipulation of the Bitcoin price as well leads to overall malignment of the whole space.
🔓There is a lot of benefits that can arise with the entry of institutional investment. Popularly referred to as ‘smart money’, they create legitimacy and maturity of the new asset class. This in the long run is more bullish for the space. Rumors of the launch of a Bitcoin ETF would make the price skyrocket since the fund provider would have to purchase the Bitcoin to back up the speculative prices of the ETF.
Nevertheless, there are a few projects and companies which are leading the way in ensuring good professional investment conduct. For instance, some exchanges are launching products that can ease the on-boarding of institutional money into the space such as ETFs. These include, compliance with regulation, which results in a stamp of approval for the service provided. These offers investor confidence.
Diversified investments
Much of the current large order purchases of cryptocurrency is offered through over the counter services. It is risky to make such transactions on centralized exchanges because they are risky and prone to hacking. Unregulated and with thin order books such buy walls can even eat the whole order book. Indeed, there is a lot that is yet to be done to easily onboard institutional money.
DarcMatter offers a particularly unique solution having an impeccable track record of investing in traditional assets, for a multitude of important partners. DarcMatter offers their investors access to multiple investment opportunities and the latest innovations in fintech. Now investors can also be able to have crypto as part of their portfolio. A study has found that a good number of wealthy individuals are interested in investing in crypto but have no idea how to go about that or don’t have a platform through which they can invest securely with minimum risk. A cryptocurrency hedge fund, much like a traditional hedge fund is able to involve the experience of a professional portfolio manager who will use his/her expertise to invest in the most promising cryptocurrency projects. Some of the earliest success stories of institutional investors are the Winklevoss Brothers and Michael Novogratz who have both been able to become wealthier through early investments in Bitcoin and Ethereum respectively. I expect this trend to follow. DarcMatter gives the best of both worlds as investors can now be able to invest in crypto while using the robust blockchain-powered DarcMatter platform. High net-worth investment is not going to happen overnight. Projects like DarcMatter make the endeavour to see it finally come to fruition.
 
Useful links
Official website: https://dmc.darcmatter.com/
DarcMatter whitepaper: https://www.dropbox.com/sh/fbhm6pgmbp5ktn6/AACK1_QfUEdlmm46ob_2fyE-a?dl=0&preview=DMC_Whitepaper+(v2.5)_EN.pdf