Everything is lining up almost perfectly.
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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 initially allow trading of bitcoin and ether, but it plans to add the 12 most active coins soon. Also key for institutional investors is the ability to provide compliance with Know Your Customer and Anti-Money Laundering regulations while remaining anonymous to market makers, as with traditional prime brokers.
- And a couple of weeks ago, crypto trading and lending firm Genesis acquired V01T, an insured digital custody service, enabling the Genesis Prime Services launch for institutional clients.
The word that appeared in every one of those summaries is “institutional.” These firms are responding to the increased demand for cryptos from investors with deep pockets. That’s a big step forward.
During the first quarter, Grayscale’s Bitcoin Trust saw inflows of $388.9 million, the largest capital raise the firm has seen in a single quarter. A full 88% of the $503.7 million invested into all of Grayscale’s products during the first quarter came from institutional investors.
Of course, building out more mainstream ways to trade cryptos is only one of the catalysts to higher prices we’ve been tracking lately. Bitcoin’s “halvening” event finally happened on May 11, and with new supply being cut in half as demand rises, you have a strong formula for higher prices in all cryptocurrencies.
The widely anticipated event will increase mass appeal not just for bitcoin, but for coins of all sizes. In fact, altcoins historically outperform bitcoin after a halvening. The biggest gains occurred in the 12 to 18 months that followed the prior two, and with our altcoin portfolio already outperforming bitcoin, I see that being the case once again.
There is no better time to be invested in altcoins. The global landscape sets coins up for a rally. There is the strong tailwind from the recent halvening … and many altcoins are the basis of future of technological revolutions.
I don’t know how else to say it. Now is the time for altcoins to start making their big moves higher.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.