Billionaire Michael Novogratz has been bullish on cryptocurrencies for quite some time.
Not long ago, he said the market would be worth $5 trillion by 2021.
“Ten percent of my net worth is in this space. It’s the ‘best investment of my life,’” he says, as quoted by Coin Telegraph. “The Nasdaq got to $5.4 trillion in 1999, why couldn’t it be as big? There’s so much human capital and real money being poured into the space and we’re at a takeoff point.”
And while he doesn’t believe Bitcoin will break above $10,000 this year, it may happen next year. In fact, he notes we won’t see big moves until institutional investors jump in.
Fidelity Investments’ Move Will Help
Making a Bloomberg appearance, Novogratz is bullish on Fidelity’s latest move.
“We’ve been saying for a long time that one of the things that will get institutional investors involved in crypto is custody solutions…And they’re coming out with a world class custody solution aimed at institutions…that’s just another check.”
Granted, Fidelity’s custody product won’t be up and running until 2019.
But this is a start. Once Fidelity can build a successful track record of success, it may be attractive to institutions that are still on the fence. Plus, as other institutions take part and see success in custody solutions that may help, too.
Fear of Missing Out Will Make Investments Attractive, says Novogratz
In addition, meaningful institutional investors’ money will make its way to cryptocurrencies by 2019. We could even see a return of the same “FOMO,” or “fear of missing out,” that pervaded as bitcoin neared $20,000 last year, notes CNBC.
Banks such as Citigroup, Goldman Sachs and Citigroup are working to offer cryptocurrency products, too. The NASDAQ is about to hand institutional investors analytical tools for trading hundreds of crypto assets. And the Intercontinental Exchange (ICE) intends to form a new platform, called Bakkt. Its intention is to create an “open and regulated, global ecosystem for digital assets.”
It’ll take some time for greater adoption, but we’re getting there.
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