Historically, crypto—even bitcoin—was seen by big institutions as an investment for the fringes. Technophiles, preppers, and those willing to gamble on the shine of a new strategy were the audience for cryptos, which were kept out of mainstream investing options.
But the ongoing stability and success of bitcoin and the move of blockchain technologies into the mainstream has changed the point of view on crypto. Today, money managers, hedge funds, and a variety of big institutions are pouring cash into the markets, buying up bitcoin and other cryptos at historic levels. In 2021 alone, these institutions accounted for more than $17 billion in crypto investments, for example.
What's this pivot mean for investors and the markets? In many ways, the changing outlook is positive. It further legitimizes bitcoin and other cryptos and opens doors for new investment opportunities in these markets. It also creates a path for individuals who aren't comfortable handling crypto wallets or dealing with the technology involved to invest in crypto-related funds.
Institutional buy-in for blockchain and crypto also signals big changes in the markets and financial infrastructures of the future. With these technologies going more mainstream, the way is paved for increased movement into cashless societies where money is only a piece of digital data exchanged across the internet.
And for those who liked the fringe aspects of bitcoin, plenty of options remain. New cryptos are less likely to get buy-in from institutions, and options such as NFTs are opening doors for increasingly diverse digital investments in upcoming years.