Everything is lining up almost perfectly.
It seems everywhere I turn lately I notice rising demand for cryptocurrencies and how they are becoming more and more mainstream.
You may have heard about famous hedge fund billionaire Paul Tudor Jones, who recently announced that he has almost 2% of his assets in bitcoin. Based on his reported net worth of $5.3 billion last November, that would be about $106 million.
More billionaires and funds will be forced into cryptocurrencies to keep up with client demand and the impressive returns. Believe me, investors are noticing that altcoins (cryptos other than bitcoin) like those in my Ultimate Crypto service are outperforming bitcoin and especially the stock market.
Our altcoin portfolio has posted strong profits in a tough market … and it’s just the beginning as cryptos become more widely available in many areas, including the important financial world where the “big money” is.
That’s why smart investors need to pay attention …
While somebody like Paul Tudor Jones gets a lot of attention, much of what’s going on in cryptocurrencies still flies under the radar. But if you know where to look, the industry headlines show there’s a lot going on.
We’ve been watching a slew of firms become prime brokers in the crypto space. Prime brokerages are like central bankers to huge investors, including hedge funds. They provide access to liquidity, custody, lending, and more. They basically execute everything.
This is a big deal for crypto markets because it shows how quickly the industry is maturing. Adopting more mainstream financing and trading options for all levels of investors brings more attention — and money — to the space.
It makes sense that leading industry players like crypto exchange Coinbase, among others, are looking to sign more and larger institutional-grade investors onto their trading businesses.
Here’s a quick look at how much is going on …
- Last Wednesday, Coinbase said it will acquire the digital asset prime brokerage Tagomi in an all-stock deal worth as much as $100 million. This will give Coinbase’s institutional clients access to Tagomi’s services, including trading at the best possible price as well as the ability to short cryptos.
- Earlier in the month, FalconX announced it raised $17 million from a variety of venture capital firms. FalconX provides valuable pricing information and offers a “best” price for cryptos over a certain period of time — not an easy feat in an industry with multiple exchanges located across the world. Its service is mostly geared for institutional clients with $10 million or more in assets under management. And it’s seen a lot of action lately. The company carried out $7 billion in trading volume over the last 10 months.
- BitGo, which oversees about 20% of all bitcoin transactions, unveiled a new subsidiary dedicated to institutional clients called BitGo Prime last Wednesday. BitGo Prime will…