The recovery of leading cryptocurrency Bitcoin — which for the past month has been sitting above $10,000 Australian dollars after eight months languishing at less than half that price — has been led by support from institutional investors, according to some experts.
Bitcoin hit a nadir over December and January in 2017/18, but recently Fidelity Investments, one of the world’s biggest asset managers with more than $US7 trillion under management, launched a digital assets platform which allows their clients to trade cryptocurrencies.
The fund manager also published research proving institutional support is here to stay: 47 per cent of institutional investors view digital assets as having a place in their investment portfolios.
Apollo Capital partner Henrik Andersson recently told Stockhead the Fidelity launch, combined with news that brokers E-Trade and Ameritrade are beginning to dabble in cryptocurrency trading, proves the tide has turned.
“It has taken a while to get out of the crypto winter but we are now well and truly into crypto spring,” he told Stockhead.
“The report from Fidelity outlining the high percentage of institutions looking at the space is really encouraging, particularly when you consider it is also increasing exposure for retail investors as well through E-Trade, Ameritrade and support from some of the world’s biggest social media companies as well.”
“I think we will see Bitcoin sitting somewhere between $6,000 and $10,000 USD by the end of the year.”
This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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