Galaxy Digital CEO Mike Novogratz has described the broader crypto market as lackluster as institutional investors stay away from cryptocurrencies.
Galaxy Digital CEO Mike Novogratz Says Crypto Markets Are Lacking And Enthusiastic As Institutional Buying Slows
The CEO of Galaxy Digital said that there has been a recent lack of institutional interest in buying cryptocurrency, which has led to dim enthusiasm in the markets.
In an interview with CNBC on June 1, Novogratz said that while the modest holdings of relatively small individual buyers add some stability to the market, the lack of large-scale buyers is becoming worrisome.
“There is a constant offer from individual buyers. We're seeing that across all platforms and there isn't a lot of corporate excitement right now."
These statements reflect information from the May 31 report by James Butterfill, head of research at Coinshare, which reveals that institutional purchases of digital assets have seen a total outflow of $39 million as of last week, the sixth consecutive week of release.
However, Novogratz pointed to two key developments in Asia that could help turn the tide.
First, he pointed out that Chinese social media app WeChat now offers Bitcoin.
Secondly, Novogratz pointed to Hong Kong, which is the first to officially allow retail clients to trade crypto on regulated exchanges.
With Hong Kong now opening up for crypto-related businesses, a growing number of firms are currently competing for a license.
*Not investment advice.