Are Institutional Investors Moving Into Ethereum? – Trustnodes

Are Institutional Investors Moving Into Ethereum?


“When looking at bitcoin blockchain versus Ethereum, there’s no doubt Ethereum is superior,” Mike McGovern, the new head of Investor Services Fintech Offerings at Brown Brothers Harriman & Co (BBH), recently told Business Insider.

BBH is is the oldest and one of the largest private banks in the United States, notable, according to Wikipedia, “for the number of influential American politicians, government appointees, and Cabinet members who have worked at the company.”

McGovern says BBH has been working on blockchain technology for five years, but it’s not clear whether the bank or McGovern himself have invested in ethereum directly.

“Ethereum is not only cheaper than bitcoin, it is also more robust and has more applications outside of simply financial transactions,” McGovern said, so he may have dabbled with some eth, perhaps to try one of the applications.

Or perhaps to trade the very volatile currency which has risen from $5 at the beginning of the year, to a high of $420, now trading at around $230 with a market cap of $21 billion.

That volatility acts as a magnet for experienced day traders and their bots which try to profit from every move, with a more established player now entering the game.

North Capital Private Securities Corporation is a broker dealer, focusing on offering private funds and securities to qualified investors, such as family offices, funds of funds, endowments, foundations, and pension funds, according to Bloomberg.

They have recently opened an ethereum investment fund that will manage “up to $250 million in total,” with their website stating:

“The Company intends to invest most of its assets in Ether, the cryptocurrency which powers the Ethereum block chain. In addition, the Company will mine for Ether, will enter into mining contracts related to Ethereum, and will provide “proof of stake” and other technology services related to Ethereum.”

The funds are restricted securities offered “under Regulation D/506(c),” with the company further stating they are a registered broker and members of FINRA and SIPC.

The structure of North Capital’s ethereum fund.

Meanwhile, big investors within this space have started investing in ICOs with Tim Draper, a billionaire venture capitalist, investing in Tezos, while Pantera Capital has invested in a number of mainly ethereum based projects and ICOs.

So institutional investors are coming, with some of them already here, as the ethereum project and ecosystem starts to take a leap into the big league following its ICO boom and Ethereum Spring which has given it a total ecosystem market cap in tens of billions.


Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>