Earlier this month, the popular cryptocurrency exchange known as Coinbase, announced a new digital asset storage service for institutional investors and high net individuals. This new service by the exchange was given the name of Coinbase Custody and the announcement was made via the exchange’s twitter page as well as its official blog. The tweet announcing the service can be seen below:
It is with this background that news has surfaced of the Custody service attracting a major hedge fund that is valued at over $20 Billion. According to Business Insider and CCN.com, the name of the hedge fund has not been disclosed by the unnamed sources who provided the information. The team at Coinbase is also planning on securing more hedge funds to sing up for the Coinbase Custody storage service. Coinbase has also been reported of planning to offer margin finance as early as by the end of the year.
Greenwich Associates’ consultant Richard Johnson, had this to say about the future of Coinbase:
Coinbase is pursuing a lot of different initiatives that make sense and take it closer to or are more similar to traditional finance: custody, financing, lending, security tokens, and the institutional portal. They have the resources to fund them and will surely have some successes.
After the release of the Coinbase Custody service, Ethereum World News had done its own analysis on the possible outcomes of Institutional Investors and high net individuals getting into cryptocurrency investing due to the secure storage available at Coinbase.
Three possible scenarios on the future of the Crypto-markets were explored:
- The Coinbase Custody service becomes a gateway for the institutional investors and high net individuals to get into crypto. This means that the anticipated ‘big money’ from Wallstreet will finally make it into the crypto-markets
- All the digital assets that Coinbase currently supports (BTC, ETH, ETC, LTC and BCH) will probably skyrocket in value leading to a possible overall crypto bull run as the one witnessed last December into January this year
- Coinbase probably is gunning for a banking or brokerage license by aligning itself to the regulation of SEC by listing only what has been given the go ahead by the government authority
In conclusion, the news that Coinbase has managed to attract a $20 Billion worth hedge fund is good news for not only the crypto-exchange, but for the entire crypto markets for this is a sign of more institutional investors and high net individuals getting into crypto investing.