Michael Novogratz, Founder and CEO of Galaxy Digital, believes that the crypto space is currently heedless due to low institutional investor participation.
During interview with CNBC, the US investor said the market lacked enthusiasm as most recent activity in the space came from retail buyers while large-scale players retreated.
“Quite frankly, crypto is nonchalant, I would say. There is a constant supply from retailers. We’re seeing it across all platforms, and there’s not a lot of institutional excitement right now and so the scorching days of summer have started early in crypto. Does it make me happy? It’s just the reality,” Novogratz said.
Lack of enthusiasm from institutional investors
Declaration of Novogratz resounds a May 31 report from CoinShares on weekly flows of crypto assets, which found that digital asset investment products saw outflows of $39 million from institutional investors for the sixth consecutive week, totaling $272 million of dollars.
Bitcoin remained at the center of outflows, with a total of $11 million, while Ethereum lost $5.9 million in outflows. Algorand, Litecoin, and Uniswap funds also saw outflows of $8 million, $500,000, and $200,000, respectively.
The United States leads the flow, followed closely by Germany and Switzerland. A total of 0.8% of assets under management left the crypto market last week.
Adoption still on the rise
Despite the decline in institutional adoption, Novogratz noted that “interesting” things are still happening in the crypto space. The CEO of Galaxy Digital highlighted the growing adoption of cryptocurrencies in Asia, especially in Hong Kong and China.
China’s largest social media app, WeChat, recently enabled Bitcoin price indices in its search queries. The platform’s 1.3 billion users can now access digital asset price quotes despite the country’s current crypto ban.
Additionally, Hong Kong now allows retail crypto trading through regulated exchanges. The Hong Kong Virtual Assets Consortium has approved the listing of the top 30 cryptocurrencies by market capitalization to facilitate exchange reviews and compliance.
“There are a couple of things that happened today that are quite interesting. WeChat has just enabled Bitcoin and crypto trading on the world’s largest single platform. It’s a big problem. Hong Kong officially allows crypto trading for retail clients for the first time through regulated exchanges, and so we are seeing Asian adoption,” Novogratz added.
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