The latest cryptocurrency news show that Bitcoin adoption by institutions has gone from a myth to a fact in the past year. As the Coinbase CEO says, there are institutions that are depositing $200 to $400 millions weekly into the exchange.
Brian Armstrong, known as the Coinbase CEO, spoke on Twitter on August 16 and noted that 2019 had formed the year of reckoning for institutional Bitcoin uptake – and the trend is now obvious. As he wrote:
“Whether institutions were going to adopt crypto or not was an open question about 12 months ago. I think it’s safe to say we now know the answer. We’re seeing $200-400M a week in new crypto deposits come in from institutional customers.”
What’s interesting is that Armstrong made the comments hours after Coinbase confirmed that it is going to acquire the international operations of storage giant Xapo – which was a hot topic on many best cryptocurrency news sites.
As some sources reported, this move put Coinbase on top of the institutional manager list for cryptocurrency, with more than $7 billion of assets held under custody. The Coinbase CEO says that this is true – noting that it is also true that organizations deposit hundreds of millions on a weekly basis.
Despite the 2019 bull run for Bitcoin which is fizzling in recent weeks, Armstrong remained highly buoyant about the future, as a couple of new institutional investment products hit the market.
These include Bitcoin futures offerings, coming from players such as Bakkt and the fellow exchange Binance. The Coinbase CEO says that a decision on whether to allow a Bitcoin exchange traded fund (ETF) is due from the United States in October this year.
“In addition to custody, we’re excited to explore new ways to monetize and leverage crypto assets such as staking, borrowing against crypto portfolios and lending crypto to trusted counterparties,” the exchange hinted when talking about its future plans in a blog post mentioning the Xapo deal.
Meanwhile, the latest Bitcoin and altcoin news show that the market has consolidated a bit and stopped more declines from coming. Bitcoin is still very shy of $10,000 and the market cap is at $260 billion at press time.