Technology investment bank GP Bullhound has predicted that 2019 will be the year that institutional capital finally flows into cryptocurrency.
According to its annual report into the technological trends that will shape the next 12 months, blockchain activity is picking up with even traditional financial institutions ensuring they do not get left behind.
With previous obstructions and “tight regulations” lifted, GP Bullhound predicts more institutional capital will flow into cryptocurrency and blockchain next year.
The move will not be solely financially motivated, but backed by “increasing demand we see on the corporate and family office side and their desire to build positions”, the company said.
In a report published earlier this year, GP Bullhound predicted that up to 90 per cent of all cryptocurrencies could be wiped out in the next 12 months.
One of the bank’s key forecasts in its ‘Token Frenzy: The Fuel of the Blockchain’ report was that digital currencies would experience a “heavy correction” and that “very few companies” would survive.
READ GP BULLHOUND’S OTHER TECH PREDICTIONS
“The velocity with which the market plummeted and many cryptocurrencies went to zero value after reaching an overall market cap of over $800bn, has nonetheless surprised,” GP Bullhound stated in its latest report.
“Also Initial Coin Offerings (ICOs) stalled to centre around fewer projects such as Telegram and EOS. But we haven’t seen the last of blockchain and cryptocurrency.”