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Bakkt Raises $182M from Institutional Investors, Binance CZ Comments “Not Dumb”

Despite the crypto market experienced a rough 2018, with the market capitalization fell to lows of $100 billion in December, many analysts see the drops as being temporary because more and more large institutional investors have entered the crypto race.

Bakkt, a cryptocurrency exchange and liquidity provider created by the Intercontinental Exchange (ICE) has marked the end of 2018 with an announcement of a $182.5 million funding round from a series of notable institutional investors.

On December 31, Bakkt CEO Kelly Loeffler announced that Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, Nasper’s fintech arm, PayU, and Protocol Ventures invested in the company.

Soon after, cryptocurrency analyst and investor Joseph Young tweeted that “Bakkt raised $182 million from Microsoft’s venture capital arm, Naspers, and other big investment companies. Large financial institutions are betting big on institutional products supporting Bitcoin. Nasdaq and Fidelity invested $27.5 million in ErisX this month.”

Binance CEO Changpeng Zhao (CZ) relying upon this tweet saying “they are not dumb”. Zhao believes that the large institutional investors choose to participate in the crypto-related funding round reflects the long-term value in digital assets as they are seasoned in predicting the trend of emerging financial products. Their investment decisions are based on massive scientific significant researches that highly suggest that cryptocurrency may have a bright future.

Due to the volatility characteristic of cryptocurrency, traditional institutions are cautious about this digital asset and had not shown in-depth interest in it. However, the number of high profile investors, as well as large investment comanies, has grown significantly in 2018.

The increased interest from larger investors may play a role in supporting digital assets as well as bringing more stability to the market.

Moreover, Mike Novogratz, the chief executive officer of Galaxy Investment Partners, said he sees Q1 and Q2 2019 as a period when more institutions will start to come into crypto and he expects the crypto markets to turn bullish again in 2019.

COMMENTS(1)

  • BitBookkeeper
    3 months ago BitBookkeeper

    Bakkt Raises $182M from Institutional Investors, Binance CZ Comments “Not Dumb” – 8BTC via BTCnews on iOShttps://news.8btc.com/bakkt-raises-182m-from-institutional-investors-binance-cz-comments-not-dumb …

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