2021-03-05

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Here’s what went down on this week’s episode of Crypto Scoop

  • 78% of institutions won’t invest in crypto
  • Crypto startups to get in on $200 million fund
  • Goldman set to reopen its crypto trading desk

78% of institutional investors wouldn’t invest in crypto

According to Business Insider, JP Morgan conducted a survey to learn more about the growing interest of institutional investors in cryptocurrencies. About 3,400 investors from 1,500 institutions participated in the survey and 78% of them said that they had no plans to invest in cryptocurrencies. However, 58% of the survey participants agreed that crypto was here to stay. 14% of the respondents said that it was “something to avoid”, 21% called it a “temporary fad” while the remaining 7% said that it “will become one of the most important assets.”

When asked if their firms presently traded or invested in crypto, 89% said no and 11i% said that their institutions did. 78% of those who said no said that their firms were not planning on driving investments in the cryptocurrency space any time soon while the remaining 22% said this was likely to happen.

JP Morgan’s survey sheds more light on the position of institutions and investors on crypto investments and trading and that despite increased interest among several popular institutions, many are still divided on the subject and not too keen on getting involved yet.

Crypto.com sets up $200 million fund for crypto startups

Crypto.com, a cryptocurrency foreign exchange company with its headquarters in Hong Kong has revealed that it would be launching a $200 million fund allocated to crypto startups. This arm of the company would be called Crypto.com Capital and would be investing between $100,000  and $3 million for seed-stage startups and projects while companies raising a Series A round would be receiving anywhere between $3 million to $10 million.

This venture arm which would be led by the company’s co-founder, Bobby Bao says it is “poised to accelerate the growth of promising startups and has been set up based on their motto to put “Founders First.”

Goldman Sachs to reopen crypto trading desk

Popular investment bank Goldman Sachs is set to reopen its cryptocurrency trading desk sometime in mid-march. The company had originally planned to open up the service in 2018 but had ditched plans for it owing to some regulations. The company had at the time stated that they had a lot to put in place that was being held back by regulations that were beyond their control.

This move is part of the company’s plan to reenter the crypto space. Goldman is also reported to be exploring a crypto custody service and the possibility of a Bitcoin Exchange Traded Fund. The revival of the trading desk comes as interest in bitcoin soars and more institutions buy into it.