In an exclusive Q&A with Karen Chen, co-founder and CEO of the leading digital asset exchange Coinsuper, we got the inside scoop on current institutional interest in the crypto markets, level of participation in over-the-counter trading (OTC), and thoughts on stablecoins.
Coinsuper is a global digital asset exchange that offers a professional trading platform for institutional investors, and therefore has a great deal of experience and insider information regarding institutional interest in the crypto markets.
Bitcoin (BTC) on the Cusp of Institutional Investment
Per the interview, Chen expounded on Coinsuper’s experience with institutional players such as market makers and token funds who have traded OTC with the exchange and contribute to a significant amount of stablecoins flow.
However, she noted that while Coinsuper has hosted these types of institutional players, the crypto space and her exchange are still lacking participation from traditional institutions such as asset managers, hedge funds, family offices, and other traditional outfits.
According to Chen, these types of investors are still on the sidelines, but are monitoring the markets very closely, or are invested via “equity” into crypto and fintech-related businesses.
Adding to this, she said:
“It may really take a massive burst of Bitcoin to $8k+/10k+ levels to get traditional institutions having an appetite for direct Bitcoin/crypto ownership. This is because we believe at these levels Bitcoin is re-surging and proven not to be on the path towards death/zero.”
Further explaining what it will take to get these institutional investors involved with crypto, Chen proclaimed that there are two factors affecting their decision to jump in. First is the efficiency and liquidity of the market, and second is the uncertain regulatory environment.
Once these two factors are addressed and improved, we could potentially see an influx of crypto investment come from asset managers, banks, and endowments who hold regulatory licenses.
When do you think the crypto landscape will be ready for real institutional investment? Let us know what you think in the comment section below.