A new survey shows that one out of five finance firms are planning on trading cryptocurrencies this fiscal year. With regulators beginning to monitor cryptocurrencies and its prices stabilizing after its downtrend, investing in crypto might be a profitable venture. Cryptocurrencies will be a step closer to mainstream investing if these firms manage to make decent returns.
The survey was conducted by financial firm Thomson Reuters and includes over 400 clients of its platforms. The inquiry showed that roughly 20% of its clients are considering trading cryptocurrencies. Within the percentage that is planning on investing in digital coins, 70 percent are planning to trade in the next 3-6 months while 22% plan on trading over the next 6-12 months. While Neill Penney, co-head of Trading at Thomas Reuters, admits that cryptocurrency trading is still a niche market, it still has the potential to enter the world of mainstream finance.
“Cryptocurrency is still a relatively small part of the trading market, but this survey makes clear this niche segment is starting to enter the mainstream of the financial services industry. This is a major change from a year ago,”
When one thinks about it, now would be the perfect time to begin investing in cryptocurrencies. The crypto market peaked at the end of 2017 with bitcoin reaching nearly $20,000 followed by a crash in 2018 with the price dropping around $6,000. This ebb and flow of bitcoin prices also affected many altcoins. The pattern of the crypto market rallying before new years and crashing shortly after has repeated itself over the past four years. These past two months cryptocurrency prices seem to have finally stabilized for bitcoin and other altcoins with speculations of the currencies going on another bull run.
Cryptocurrencies made their debuts into mainstream finance when the Chicago Mercantile Exchange (“CME”) and the Chicago Board Options Exchange (“CBOE”) began offering bitcoin future contracts. Nonetheless, many finance and investment companies tend to shy away from cryptocurrency due to their greenness and volatility. The interest in cryptocurrency from investment firms might be a direct result from organizations such as the U.S. Security and Exchange Commission (“SEC”) beginning to regulate crypto trading which would assure a level of security to investors.