The crypto market is for the most part dependent upon the future of exchanges. Institutional investors are still the main drivers of trading volume, and to enter the mainstream, cryptocurrencies need exchanges to add more tokenized products – either in addition to traditional OTC offerings or through the establishment of stand-alone decentralized exchanges.
While the bull market of 2017-2018 found cryptocurrencies poised on the edge of acceptance by retail investors, professional money managers have displayed a consistent preference for less volatile investment options.
Regulation is critical to the future of exchanges
During the iFX EXPO Asia 2019 session on ‘Diversifying to Crypto,’ the expert panelists agreed that institutional investors face a number of barriers that must be addressed before any significant boost of trading volumes for this asset class can take place.
Institutional investors are currently seeking solutions for regulation, custody, and liquidity. As more jurisdictions take on oversight of decentralized assets, the ability to work with these issues could serve as a differentiator for new exchanges looking to gain market share.
Bitstamp’s Grčar supports sustainable regulation
Bitstamp, has been tracking the future of exchanges since Bitcoin was first introduced, and are well aware of the periodic bubbles which scare of institutional investors.
BIT-THOUGHTS: @SECowell, a former institutional investor who recently joined our business development team, shares his thoughts on #crypto bubbles and why experienced #finance industry pros like himself are still switching into crypto #careers. ?? https://t.co/wbccpImQKl
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— Bitstamp (@Bitstamp) January 29, 2019
Grčar, who prior to joining Bitstamp worked as a lawyer, understands the importance of a sustainable legal structure that helps cryptocurrencies compete on a level playing field as other commodities, and reassures money managers. According to Grčar, “Half of the market will welcome regulation greatly…”
He continued that the goal is getting to the point where “we can say we have a working, global, mature cryptocurrency market and it can compare to just about another market there is. So, commodities, equities, you name it.”
Barcelona Trading Conference to host crypto exchange debate
Grčar will be joining Finance Magnates along with dozens of other crypto thought leaders as part of the upcoming Barcelona Trading Conference. Other respected experts confirmed to attend the event include Bharat Rao, CEO of Leverj, and Robert de Jong, CBDO at Bitfinex. Along with panels on the latest crypto exchange developments, attendees can look forward to sessions and workshops covering stablecoins, security tokens, crypto in the media, and the accuracy of trading data.
To register for a spot at the Barcelona Trading Conference, or to find the best sessions from the full list of BTC 2019 panels and workshops, visit the event website at https://btconf.io/2019.