Grayscale who hold 203,000 Bitcoins i.e. over 1% of the total circulating supply, in their 2018 report are still optimistic on Cryptocurrencies and say that over 66% of investments into their funds were from institutions.Interestingly a lot of the institutions are investing cash/fiat and research from JP Morgan has calculated that the amplifier effect of cash on the Crypto sector could be as much as 1:117.5. To put this more simply $1million in cash has the impact of increasing the cryptocurrency market by as much as $117.5 million. As we see greater liquidity and money coming into Digital Assets the amplifier effect no doubt be smaller, but clearly in the short term, it is easy to see how relatively small sums of capital could drive up prices-. Unfortunately would this once again send the wrong message especially to smaller investors looking to make a quick buck?
