Is Cryptocurrency Going Mainstream?

Until recently, cryptocurrency was dominated by retail investors, including cryptographic people, libertarians, and a few early venture capitalists and hedge fund managers.

Today, there are more than a hundred cryptocurrency hedge funds.

And just this week, Goldman Sachs announced its first major cryptocurrency hire. According to CNBC, Goldman’s announcement read, “In response to client interest in various digital products, we are exploring how best to serve them in the space.”

So today, we’re going to explore the latest stories that indicate crypto may indeed be going mainstream.

Nasdaq CEO Hints at Future Cryptocurrency Exchange

Nasdaq just announced a partnership with crypto exchange Gemini to monitor futures pricing. Nasdaq CEO Adena Friedman took it further, stating in prepared remarks, “Certainly Nasdaq would consider becoming a crypto exchange over time.”

Square Stock Jumps 5% as Analysts Predict “Sizable Boost” in Earnings Due to Bitcoin Trading

This is big news because, for the first time, cryptocurrency trading is impacting a major public company’s bottom line.

From CNBC:

An analyst at Nomura Instinet said Square could see a “sizable boost” to first-quarter earnings thanks to the addition of bitcoin trading on its payments app.

Major VC Firm Andreessen Horowitz Is Planning a Separate Crypto Fund

Andreessen Horowitz (called a16z) is apparently moving forward with its long-rumored cryptocurrency fund. a16z is a powerhouse firm and is one of the biggest investors in Coinbase, the leading U.S. crypto exchange.

When a16z raises a fund, it’s almost always a large one. Several of its funds are worth more than $1 billion. More from TechCrunch:

The rumor has been going around for a while – not a huge surprise since the firm has invested in the likes of Coinbase, Earn.com and CryptoKitties and co-founder Marc Andreessen is a big crypto advocate – but it now appears there is genuine substance to it.

Crypto Hedge Fund Manager Says Crypto Has Bottomed Out

This story is a nice feel-good piece to end on.

Here’s the juicy part of the article, via Bloomberg:

Pantera Capital Management, which has more than $800 million in assets, says $6,500 was the low of this bear market and bitcoin will stay above that price for the majority of the next year, likely surpassing the previous record of almost $20,000, according to a note sent to investors Thursday.

I wholeheartedly endorse this sentiment.

Have a great weekend, everyone.

Adam Sharp
Co-Founder, Early Investing