Prominent cryptocurrency trader Brian Kelly has said that the adoption that is being made by Wall Street of bitcoin could pave the way for a surge in the cryptocurrency market.
Earlier this week, NYSE’s parent company ICE Exchange has been working on a bitcoin exchange for investors from the conventional financial corner. A number of reports has disclosed that the ICE Exchange is not initiating a futures market such as CME and CBOE. Instead, it would be a proper bitcoin exchange wherein investors can buy, sell, and store bitcoin directly.
“The parent company of the New York Stock Exchange has been working on an online trading platform that would allow large investors to buy and hold Bitcoin, according to emails and documents viewed by The New York Times and four people briefed on the effort who asked to remain anonymous because the plans were still confidential,” said a report on the New York Times reported.
Kelly stressed that while he is “shocked” the cryptocurrency market did not soar in value based on the penetration of NYSE into the market, he remarked that investors have missed out on significant factor, which is that like Xapo and Coinbase, NYSE and its parent company ICE Exchange would begin operating a custody solution for institutional holders.
“I’m actually a bit shocked that the market did not pick up on this. Dominic Chu of CNBC said that investors will get physical delivery of bitcoin. That doesn’t sound that interesting except for the fact that it means ICE Exchange has a custody solution. That has been the big hurdle. How do you hold onto these assets. These are generally bearer instruments, just like gold bearer bonds. That’s the big deal. They have come up with a custody solution for institutional holders,” said Kelly.
He went on to say that the development of a bitcoin custody solution by ICE Exchange simply says that cryptocurrencies have become an emerging asset class. Kelly also said that the growth of cryptocurrencies as an emerging asset class would pave the way for multi-billion dollar pensions, endowment, and institutional investors to invest in the cryptocurrency market.
“Finally, it opens the door for pensions and endowments. Up to this point, it has been very difficult for them to get comfortable compliance wise in holding cryptocurrency. If ICE has a custodian solution that is SEC compliant, that’s going to open the floodgates,” Kelly said.
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