Coinbase says more institutional investors are now using its platform to build direct positions in the cryptocurrency market.
Crypto fund managers are now getting more backing from institutional investors that see the crypto market as an alternative investment strategy.
In a report, the exchange says it observed a “noticeable uptick in institutional business’s growth” in the first half of the year.
According to Coinbase, the “greater visibility of reputable investors warming up to digital assets” is also helping to fuel growing “confidence among this community.”
In May, a hedge fund, Tudor Investment Corporation, disclosed it had taken positions in bitcoin.
At the time of this announcement, there were reports quoting the hedge fund’s CEO, Paul Tudor Jones, arguing that bitcoin is a better hedge against inflation.
Jones predicted that the record central banks’ monetary expansion of 2020 will be a “potential catalyst for an increased interest in bitcoin.”
On Monday, July 27, the price of bitcoin passed $10,000 for the first time in several weeks before breaching the $11,000 mark.