Recently, Michael Wu, co-founder and CEO of Amber Group, was invited to participate in the online interview column “Exposure of Investment Institutions Entering the Crypto Market” initiated by Cointelegraph Chinese. Combining the current rising Bitcoin situation, Michael Wu shared his unique insights on the mainstream adoption of cryptocurrencies and the relevance of Bitcoin to the DeFi market.
Institutional funds continue to flow in, mainstream adoption still has a long way to go
Michael Wu said that this year is a year when institutional funds really flow into the crypto market. He also mentioned that although “institutional admission” only aroused heated discussions in the second half of this year, this trend began to sprout as early as the beginning of the year. According to data from Amber Group, since the beginning of this year, traditional institutional clients have continued to allocate encrypted assets, including high-net-worth individuals, family funds, and corporate clients. More interestingly, Michael Wu observed that the Bitcoin plunge in March of this year was like a screener. On the one hand, some highly leveraged and speculative players were eliminated, and on the other hand, it also provided a buying point for long-term investors. Therefore, after March, Amber Group has seen stronger, longer-term, and more sticky institutional capital inflows.
But on the other hand, Michael Wu also believes that from a longer-term perspective, the cryptocurrency represented by Bitcoin is currently only a niche asset, and the discussion on Bitcoin by mainstream institutions has just begun. When an institution or anyone discusses Bitcoin is no longer news, then it will be when Bitcoin is truly fully adopted by institutions. In addition, from an overall point of view, cryptocurrency is still a young industry. Judging from its current market value and its share of world wealth, there is still huge room for growth to be tapped and realized.
Institutional buying drives the rise of Bitcoin, and the DeFi market is linked to Bitcoin price trends
Starting from the second half of the year, the price of Bitcoin has rebounded strongly. Contacting the hot DeFi boom this summer, the host raised questions about the relevance of the DeFi market and Bitcoin prices.
When asked about the “reason for the recent surge in Bitcoin and whether it will lead to a new round of DeFi outbreak”, Michael Wu pointed out that Bitcoin, as a means of storing value better than gold, its basic value is self-evident Therefore, it has become the first choice of traditional institutions and enterprises or individuals determined to test the encryption market. The current rise in the price of Bitcoin is a manifestation of the recognition of Bitcoin as a stored value by some institutions, which is mainly driven by institutional purchases.
Immediately afterwards, Michael Wu said that if buying and holding Bitcoin is the first step, then the next step is the beginning of institutions’ understanding and exposure to the DeFi market. In Michael Wu’s view, DeFi has created a new paradigm with strong innovation and fast iteration and update speed, which will surely enable traditional institutions to recognize the difference in DeFi ecological infrastructure and deepen their understanding and investment in the encrypted financial market. Therefore, he believes that in a longer period of time, DeFi and the Bitcoin market will show a linkage of price trends.
Finally, when talking about products that are more suitable for traditional institutions to enter and access encrypted finance, Michael Wu believes that security, compliance, and ease of use may become the main demands of institutional customers. Amber Group has always insisted on “customer needs , Service first” model, continuously optimize and innovate products and services.
It is reported that, as a global encrypted financial intelligence service provider, Amber Group has served more than 200 institutions and high-net-worth customers since its establishment in 2017. It has a 7*24-hour global professional team that is powered by Amber Pro , Amber Trading Desk, Amber App, ambergroup.io, etc., a full-value chain product matrix that provides comprehensive and customized encrypted financial solutions from institutions to individuals.
Disclaimer: The opinions of the article do not constitute investment advice, please pay attention to investment risks.
