Crypto Institutional InvestmentIn an interview with Bloomberg Television, the crypto magnate said the following about digital currency, which he dubs 'smart money':
“All the architecture that institutions need to feel comfortable with this is being put in place [...] You’re going to start to see custody come online.”
Crypto Institutional Investment Needs Custody SolutionThe movement would require "custody solution from the likes of Fidelity," which, according to Novogratz, already has 200–300 customers interested in crypto investment. Custody solution for cryptocurrency is effectively the same as needed for fiat currency, whereby a brokerage or other financial institution holds securities on behalf of the client. But safeguarding digital assets is a bigger ask, as prices fluctuate wildly and coins are at risk of being hacked. But if the right custody solutions are in place as Novogratz suggests, then institutional investment could start happening in the digital-asset space. >> Coinbase Wallet Now Compatible with Google Drive and iCloud
Start SmallThe likelihood is that some will enter tepidly with small amounts of capital, to see how it goes:
“Over the next six to 12 months you are going to see institutions put a small amount of their assets.”However, as Novogratz explains, “A small amount of institutional assets is a lot of money.” It would only take a few smaller institutional investments to spur on a massive rally.