Eric Peters – CEO of One River Digital Asset Management – thinks the next crypto bull run will be “very powerful” as it will be driven by institutional adoption.
He argued that the market may have already entered such a phase.
‘Extremely bullish’ for the long term
In a recent appearance on the Bankless podcast, Peters opined that the crypto winter is already in the past, describing last year’s decline until the Wall Street collapse of 1929 (aka the Great Crash):
“I’m thankful we navigated this bear market, and it was really kind of a market crash in 1929.”
One River’s exec said he is “extremely optimistic” for the medium to long term, believing major institutions will participate in the next cycle:
“I think the next phase will be very powerful because it will finally have real institutional adoption.”
Peters suggested that the bull run may have started, outlining the market’s uptick since the start of the year. Bitcoin ended 2022 at around $16,500, while it currently trades at around $22,400 (up 35%). It even spiked to $25,000 in February, a valuation last recorded in June 2022.
One factor currently holding institutions back from diving into the crypto ecosystem is regulatory uncertainty, he said. Once the US, Europe or Canada enacts the right regulations, institutional capital should flow into the industry, while financial firms could integrate blockchain technology into their operations, he claimed.
Peters saw some benefits from the cryptocurrency market’s devastating plunge in 2022 as it gave people essential trading lessons. He advised prospective investors to jump on the bandwagon only if they are prepared for the volatility and different cycles. He concluded that those who weather the turbulence will benefit in the long run and understand how the economy generally works.
The deal with Coinbase
The US-based cryptocurrency exchange – Coinbase – purchased One River Digital Asset Management a few days ago without disclosing the terms and sum of the agreement. As a result, the latter will be rebranded as Coinbase Asset Management, while Eric Peters will continue to serve as CEO and CIO.
Greg Tusar, Coinbase’s head of institutional products, said the deal aims to attract more institutional capital to the sector as One River targets such clients.
The two entities entered into a partnership in mid-February on a new SMA offering, called ONE Digital SMA, to provide better crypto exposure and opportunities to registered investment advisors and private wealth platforms.
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