Despite slowdown, crypto is attracting a new group – Institutional investors

Depending on your exposure to crypto, the last few months have been a wild ride. Bitcoin plunged in value while firms like Celsius made international headlines for unethical lending practices. 

But it is not all doom in gloom for those in the decentralized finance space. In fact, crypto veteran Ryan DeMattia has noticed a positive shift recently. 

In previous years, crypto conferences were filled with proverbial “crypto bros” and others interested in finding the next “big” digital coin to buy. 

“The year, [conferences] are filled with banks and pension funds and university funds. You’d never think these big, very slow moving investors would be interested in this type of high-risk environment, but they’re all starting to recognize opportunities with things like internet bond models or like payment income models. And that’s been really great to see.” 

While there is still uncertainty in the market, the fact that such institutional players are playing in the space means that crypto is getting out of its “Wild West” phase. 

“One of our mantras is that crypto isn’t just for cowboys anymore,” DeMattia added. “A year ago, people were just trying to get rich in DeFi and throw their money into DAOs and little crypto projects.” 

Now, the total number of decentralized transactions reach upwards of $11 billion per week. 

 

 

DeMattia and his team at Coindex Capital Management navigated that ‘Wild West’ and is now helping more institutional investors navigate the crypto and general decentralized finance space. The investment management company based out of Atlanta uses its proprietary technology platform to manage various funds. 

Its approach has already piqued the interest of major institutional investors looking for safer exposure to the crypto and DeFi space. 

To date, Coindex has snagged $30 million in outside investment. 

“We see it as a sign that the business has a lot of longevity to it…we’re not just going for edge cases [in crypto],” DeMattia added. 

 

Atlanta’s Crypto Universe 

It is hard to overstate how quickly Miami has emerged as a leader in the crypto and blockchain space. Not a week goes by that a seed startup lands a multi-million dollar investment round or the city’s government makes another big play to support the ecosystem. 

But DeMattia is confident that Atlanta can stake its claim as a financially-stable crypto hub. 

“Atlanta is a great place to run a business. And what’s really interesting is that over the last year or so I’ve actually seen the crypto community really start to emerge here. And it makes sense because you’ve got this awesome talent pipeline…a lot of really talented kids who want to get into this space. You also have a lot of big financially-focused firms that could help drive [the sector]. We’re not going to be like Miami, which is the very flashy side of crypto. But processing 30,000 transactions a second? That sounds like Atlanta’s speed,” DeMattia explained to Hypepotamus.

Still, there is a reason for caution around the crypto space given the shifting regulatory landscape. “Last year, [people in crypto] probably got a little bit out over our skis,” DeMattia added, nodding to the fact that many coin prices were inflated and more people were entering the space.  

As DeMattia and the Coindex team look to the future, he said there is a need for more “clear, hard guidelines, where regulation is heading…and who is going to regulate it.”

 

This content is provided for informational purposes only, not as investment advice or a recommendation to buy or sell any asset or security, or engage in any specific investment strategy.. Further, this content does not constitute an offer to sell or a solicitation of an offer to purchase any security of Coindex Capital, LLC.

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