Despite Crypto Market Downfall, World’s Largest Financial Institutions are Still Investing in Crypto
Sequoia, Baidu, Nasdaq, and Fidelity are amongst some of the largest VCs, technology conglomerates, and financial institutions to make big bets on crypto in the past week, both digital asset-related businesses and blockchain protocols are raising tens of millions of dollars from high profile institutions.
Crypto Interest in not Dead yet
On December 4, Nasdaq, the world’s second-largest stock market operator in the world, and Fidelity, the fourth largest asset manager in the global market, invested in a cryptocurrency exchange called ErisX.
The company secured a $27.5 million funding round led by Nasdaq Ventures and Fidelity Investments in less than two months after it raised a funding round from TD Ameritrade, the electronic brokerage giant valued at $30 billion.
At the time, J.B. Mackenzie, the head of futures and foreign exchange trading at TD Ameritrade, said that the firm’s investment in ErisX demonstrates its interest in establishing a platform with which accredited investors and retail traders in the U.S. market can invest in cryptocurrencies in a fully compliant and protected ecosystem.
“We wanted to find something that brings cryptocurrency to customers where they can see it on an actual exchange, something they feel comfortable with in regulated space,” Mackenzie said in October.
With the newly acquired capital, ErisX CEO Thomas Chippas said that the company will begin to aggressively expand its team throughout the country to eventually provide support to institutional and individual investors in all 50 U.S. states.
A major investment in a cryptocurrency business during a period of uncertainty and doubt could rekindle the interest from investors in the global market towards cryptocurrencies.
The cryptocurrency market has shown signs of survivability and relatively high demand from individuals and institutions across the world, showing a glimpse of hope to investors that have bet on the market based on the potential of the asset class in the long run.
High profile deals, like the Nasdaq and Fidelity-led funding round, could serve as a reaffirmation to potential investors that the industry surrounding the asset class is not a fad and that it will survive the bear market as it has over the last 9 years.
Source: CCN News