“If 2017 was the year cryptocurrencies went mainstream, then 2018 is certainly shaping up to be the year they go institutional,” the capital markets research and consulting firm said in a report by senior analyst Monica Summerville and colleagues.
Cryptocurrency investors have been waiting for institutional money to come into the market. Many expected the launch of bitcoin futures on major U.S. exchanges in December would have helped, but bitcoin has lost more than half its value since then.
The market capitalization of all cryptocurrencies has halved from $800 billion in January to around $400 billion this month, according to CoinMarketCap.
Three main hurdles — regulatory uncertainty, lack of market infrastructure and institutional-grade data sources — prevent institutions from participating in the cryptocurrency market at scale, the report said…