Prices may still move sharply, but the shifts may not be as violent as in the past few years. The increased adoption and legitimacy of cryptocurrencies also will likely help mitigate some of the volatility. These firms have come around to the potential benefits of cryptos,” Chashchin said. “Even if the source of institutional investor interest is the Fear of Missing Out (FOMO), all of the institutional decisions have been made after careful consideration. “If institutional investors begin to take profits, then it can cause a ripple effect.”īut he added that these large firms will likely keep flocking to bitcoin as a potential hedge against inflation and rising interest rates, which could hurt traditional government-backed currencies. “More than once we have observed a correction in the market,” Anton Chashchin, managing Partner of Bitfrost, a digital assets service provider, said in an email to CNN Business. The key, experts said, is for investors to learn to stomach them and ride out the inevitable ups and downs.Ĭrypto: The future of money or the biggest scam? Such breakneck swings in crypto prices are probably here to stay. Those prices obviously have recovered - and then some - but it took until December 2020 before the coin got back to the $20,000 mark. ![]() ![]() Then came the crash, with bitcoin plunging as low as around $3,500 by the end of 2018. Many investors rushed into bitcoin in 2017 and watched prices surge from about $1,000 per coin to a little below $20,000 by December of that year. Still, the latest pullback is a stark reminder of how notoriously volatile bitcoin and other crypto prices can be. Major professional and institutional investors, including top fund managers George Soros and Stanley Druckenmiller, have been investing in crypto. “There probably will be an ether ETF in early 2022.” There probably will be an ether ETF in early 2022,” said Nick Elward, senior vice president and head of institutional product and ETFs at Natixis Investment Managers. “The next possible step is for additional ETFs for other coins to launch. ETFs investing in other top cryptos could be in the cards, too. ![]() There now are also several bitcoin exchange-traded funds (ETFs) for individual investors to choose from.
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