Bitcoin is creeping back up as the professionals launch long expecting trading plans
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Though Bitcoin took a 2.3 per cent hit on Wednesday — down to $US6,101 — industry experts are buoyant thanks to a recovery since it hit a nadir in December and January.
The price of Bitcoin has risen 90 per cent since it hit lows of $US3,216 in mid-December, a rise supported by institutional investors which had been reticent to back cryptocurrencies.
The world has been waiting for Fidelity Investments, one of the world’s biggest asset managers with more than $US7 trillion under management, to fully launch a digital assets platform which will allow their clients to begin trading cryptocurrencies.
It could start within a few weeks, but in the meantime the fund manager has 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, according to Fidelity.
Apollo Capital partner Henrik Andersson says 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 by the end of the year.”
Momentum is slower, however, over at the NYSE which is still waiting for the green light from the SEC to launch its Bakkt digital asset exchange, though Andersson believes it is still “very likely” to launch the service within the next three to six months.
There are similar problems for Ledger’s partnership with Japanese bank Nomura, which may have to wait until 2020 before its digital assets solution is launched.
Andersson said ongoing concerns regarding security were hurt by the recent battle between stablecoin Tether and crypto exchange Bitfinex.