Increasing Institutional Investors’ Participation will lead to Next Crypto Bull Run Says Brian Kelly

The Chief Executive Officer (CEO) of investment management firm BKCM and CNBC commentator, analyst, and coordinator, Brian Kelly said that he is bullish on the crypto industry, digital assets market, and blockchain technology. Kelly chose CNBC’s Power Lunch to talk about the nascent industry.

In 2013, after a well-published conversion about the investment potential of Bitcoin and its underlying blockchain technology Brian founded the investment management firm BKCM. Brian is the lead portfolio manager for BKC fund, an actively managed ETF focused on digital assets and blockchain, offered by REX Shares. Brian Kelly was named as one of the ‘30 Most Influential People in Bitcoin’ by inside Bitcoin in 2015.

In his program Power Lunch on CNBC, Kelly brought up the topic of Fidelity Digital Asset Services (FDAS). According to Kelly, the step taken by the financial institution Fidelity of establishing a crypto centric subsidiary is fantastic news. Earlier this week Fidelity announced that it has plans to store and trade digital assets for their millions of institutional clients. According to Brian Kelly, lawful crypto custody is one of the most crucial aspects of the FDAS plans as such a solution will entice institutions such as hedge funds, endowments, and family offices to pour a significant amount of capital into the crypto market.

Kelly believes that the arrival of world-renowned institutions in the crypto space may spark a round of institutional FOMO, which is likely to work as a catalyst behind the nest crypto bull run. Kelly said that

“I can tell you from the conversations that we’ve had, for our crypto hedge fund, that the institutional herd is starting to enter this market.”

Brian gave the example of Yale University which is the home of the world’s second largest higher education endowment. Recently a crypto fund of the university raised $400 million of funds. According to the reports world, renowned universities including Harvard, Stanford, and MIT have also shown interest in the crypto world and allocated capital for unnamed variety of fintech and crypto investment opportunities.

Brian said that

“Soon. I think very soon. It wouldn’t surprise me to see a lot of those companies have something working in the background by Q1 of 2019. I mean if you’re looking at this, there are a couple of things you need to think of. Fidelity is in this space. Also, remember that startups like Robinhood launched a crypto app and got a million users in four days. So if you are at Schwab or you’re at E*Trade, then you may start to look at that and say, “Where are the customers?” And they’re in crypto, so you gotta offer that product.”