The crypto market is abuzz with renewed energy as previously dormant investors reawaken in the aftermath of the presidential election. According to Kelly Greer, head of Americas sales at Galaxy, these investors are now wide awake and ready to dive back into the world of digital assets.
Investors Awaken to New Opportunities
Greer, who has spoken with hundreds of portfolio managers, fund managers, and individuals about Bitcoin and digital assets over the years, notes that those who were once interested but hesitant are now reemerging post-election. This renewed interest spans across various types of participants, including traditional institutions, fund managers, and high net worth individuals.
The awakening of these dormant investors is evident in the market’s metrics. Greer points out that the seven-day average exchange volume chart has seen a dramatic uptick since November 5th, showcasing the increased activity in the crypto space.
Factors Driving Renewed Interest
Several factors have contributed to the reawakening of crypto investors, making Bitcoin and other digital assets impossible to ignore:
- Bitcoin’s strong performance, consistently hitting new all-time highs
- Increased research showcasing the benefits of adding Bitcoin to investment portfolios
- Anticipation of regulatory clarity under the new presidential administration
Institutional Investors and Bitcoin Allocation
As institutional clients approach Galaxy for guidance on Bitcoin allocation within their portfolios, Greer emphasizes the importance of having at least some exposure to the asset. With Bitcoin’s volatility decreasing and the availability of liquid options markets and institutional custody solutions, incorporating the cryptocurrency has become more accessible and attractive to these investors.
Looking Beyond Bitcoin
While Bitcoin remains the primary focus for most institutional investors entering the crypto space, some clients are also expressing interest in other digital assets. Greer notes that certain lower market cap layer-one protocols and revenue-generating applications have caught the attention of those willing to take on more risk.
However, Greer cautions that some of these alternative assets may struggle with value accrual or unlocking schedules in the future. She emphasizes the importance of seeking out projects with enduring use cases and proven staying power, similar to Bitcoin’s decade-long adoption and security.
Regulatory Tailwinds on the Horizon
Looking ahead to 2025, Greer predicts that regulatory tailwinds will drive increased institutional participation in the crypto market. While the specifics of the new administration’s approach remain uncertain, the anticipated regulatory clarity is expected to attract more traditional counterparties, leveling the playing field for institutions to hold and trade Bitcoin alongside other traditional assets.
One key development to watch is the appointment of the new SEC chair, which is expected to occur before the presidential inauguration on January 20th. Industry experts are closely monitoring potential candidates, such as Robert Gallagher from Robinhood, who is known as a proponent of cryptocurrencies.
A Bright Future for Crypto
As dormant investors reawaken and regulatory clarity looms on the horizon, the crypto industry is poised for significant growth and mainstream adoption. With institutional investors increasingly recognizing the potential of digital assets and the market’s infrastructure maturing, the future looks bright for cryptocurrencies.
As Greer and her team at Galaxy continue to guide clients through this exciting and evolving landscape, one thing remains clear: the crypto market’s post-election awakening is just the beginning of a transformative era for digital assets.
