At a time when the entire cryptocurrency market seems to be affected by a downward slope, ‘Big Four’ auditor KPMG based out of Netherlands has gone on to release a bullish report earlier in the previous week.
In the report, KPMG debates that in order for the crypto industry to “realise its potential” it would have to be joined by institutional investors.
Dubbed as ‘Institutionalization of Cryptoassets,’ the report emphasises more on methods as to invite institutional investors into the cryptocurrency space, it also shows the “challenges” that would have to be tackled to do so, as well as circumstances under which crypto could become a “full-fledged asset class.”
The starting line of the report’s authors page reads as follows, “Cryptoassets have potential. But for them to realize this potential, institutionalization is needed.”
The report then continues., “Institutionalization is the at-scale participation in the crypto market of banks, broker-dealers, exchanges, payment providers, fintechs, and other entities in the global financial services ecosystem. We believe this is a necessary next step for crypto to create trust and scale.”
Traditionally, KPMG is known as an institute that focusses more on the risk management of Blockchain Technology, that has resulted in a shrewd outlook on cryptocurrency in its early years, along with the other major auditors.
KPMG looks at crypto as a “big deal” and something “worth paying attention to.”
As per published by the report, “Cryptocurrency continues to garner both good and bad press, and the debate between supporters and detractors is far from settled.”
The KPMG report further states, “In 2018, we are seeing a wave of new entrants in the market such as security token platforms, stablecoins, and even established financial services institutions that are launching crypto products and services. Cryptoassets are now impossible to ignore.”
In a time when the entire cryptocurrency sector seems to be worried, a glimmer of hope comes from the news that several major sources have maintained their stance stating that cryptocurrency’s fortunes shall gradually elevate upwards prior to the entry of institutional investors, these sources have also predicted this upward shift to start from the upcoming month with the launch of the Intercontinental Exchange’s (ICE) trading platform Bakkt.
Notably, the latest decrease in the price of major cryptocurrencies, including Bitcoin’s price dropping to the $5000 mark seems to have coincided with KPMG report’s release. Several reports claim that this may be as a result of uncertainty regarding the future of major cryptocurrency, Bitcoin Cash, that is the fourth-largest crypto-asset as per market cap.