Various Large Financial Institutions Are Preparing for Cryptocurrency Trade in 2018

Asset managers around the world are getting more and more interested in dealing with cryptos. Their interest just keeps on growing, with indications that large institutional money flow is expected to arrive.

Despite the fact that Bitcoin (BTC) was always the most likely target for the anger and different schemes of major banking institutions, it still managed to get the attention of the big investors. Not only Bitcoin, but many other cryptocurrencies managed to grab the attention and show up on the radar of both, the investors, as well as financial institutions.

Cryptos keep gaining popularity

A recent survey by Thomson Reuters indicates that nearly 20% of financial institutions are considering purchasing cryptos during the next 12 months. Not only that, but many of the companies plan to launch crypto trading. The large majority of them even plan to do so in the next 3-6 months. The survey included data of over 400 clients, which include platforms like Eikon, REDI, as well as FX.

Trading’s co-head, Neill Penney, stated that:

“Cryptocurrency is still a relatively small part of the trading market, but this survey indicates this niche segment is starting to enter the mainstream of the financial services industry. This is a major change from a year ago.”

He also added that clients’ biggest priority right now is to get access to any data or news involving cryptos, in order to make profitable trading choices. Of course, since Thomson Reuters is the biggest provider of such data and news, it is more than capable of delivering proper solutions to these clients demands.

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Thomson Reuters’ director for financial and risk innovation, Sam Chadwick, stated that large financial institutions are currently studying digital currency assets, and have been doing so since late 2017. Despite the fact that cryptos experienced a significant fall in 2018, they are still a very popular topic. After discussing the topic with various clients in the last few months, Chadwick is convinced that the interest in cryptos is becoming not only bigger, but more serious as well.

Things are much different than they were a year ago

Chadwick also stated that investors usually gave a blank stare when he mentioned cryptocurrencies in January 2017. Now, however, things are completely different, thanks to the recent Bitcoin fever. The situation changed so drastically in only one year, and the Bitcoin-related landing page within Eikon jumped to be the second of all FX landing pages, just behind the euro.

BSO’s Chief Commercial Officer, Fraser Bell, stated that an increase in participants would mean greater competition. This will increase the importance of quick evaluation of crypto data. Electronic trading companies can use this to their advantage, by analyzing data quicker than anyone else through their more sophisticated methods.

Bell also said that the data needs to be accessible in order for this to happen. Otherwise, these companies won’t be able to isolate the useful info. Theoretically, this is not a difficult task, but in reality, the relevant connectivity to any and all news venues is crucial.

It would seem that the appearance of new and improved regulation involving cryptos brings more clarity to the matter. Whenever some part of the world, be that Japan, US, or Europe, makes a step towards regulating cryptos, more and more investors become drawn to the possibility of making a large profit. There is no denying it anymore, the cryptocurrencies are here to stay.

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