Increasingly, institutional investors such as banks, family offices, asset managers and insurance companies are taking an interest in Bitcoin, Ethereum and other crypto assets. For these types of investors, regulatory requirements, risk management and traditional investment processes are key!
The digital asset ecosystem has grown and developed rapidly and now provides the necessary legal certainty that we have known traditional financial markets for decades. But institutional investors looking to invest in crypto assets need the technical infrastructure to manage them easily, efficiently and securely. Depending on the type of investor, different solutions are available. Typically, an order routing system is required to execute orders on a larger scale, so prices are not affected due to low market liquidity. These systems become even more powerful if they are connected to institutional-level crypto custodians that provide reliable storage and security services for acquired assets. In addition, a broker-reseller license could streamline the investment process. And ultimately, Bitcoins and other crypto assets could be converted into banking assets: this requires the structure of a Special Purpose Vehicle (SPV), which incurs additional costs but also allows large asset managers to invest because needs assets that are " bankable".
Here are the types of investors and how they think about investing:
The detailed explanation of each investor you can find in Philipp Sandner's Profile on Medium!