Amid endless speculation about a crypto-bubble, there has been lingering indecisiveness about regulatory framework on cryptocurrency space, a lack of trusted custodians and concerns about security are key factors that continue to deter many large financial institutions from trading crypto-assets.

As a result, institutional investors perceive whenever prices begin to shift, or the famously volatile crypto-market fluctuates, veterans are quick to declare the bubble burst and the movement over.

Amongst these three factors, Beardsley cited the lack of regulatory clarity around cryptoassets as the biggest issue for these firms right now, pointing out that no major bank wants to clash with their regulators for trading in what is, relatively speaking, still a small marketplace.

Beardsley describes the lack of safe, trusted, fully insured and independently audited custodians in the crypto space as “a gaping hole” in terms of the infrastructure that is needed to attract more institutional flows.

According to CoinMarketCap, a website that tracks cryptocurrency market capitalizations, in March 2017 bitcoin accounted for roughly 85% of the overall cryptocurrency market capitalization, whereas by March 2018 that figure was down to about 35%.

Institutional money seems to be flowing in Crypto Avenue, because of which digital currency values are getting stability and will receive a significant boost in the days to come. Evidently, JP Morgan CEO and crypto pessimist Jamie Dimon recently expressed regret for describing Bitcoin as a fraud and acknowledged that “the Blockchain is real.

Constructively, the reputed IB firm has applied for a patent related to blockchain back in October of last year. This news seems to be in convergence to its CEO Jamie Dimon’s shift in his stance on crypto space. Titled Systems and Methods for the Application of Distributed Ledgers for Network Payments as Financial Exchange Settlement and Reconciliation, the U.S. Patent and Trademark Office published JP Morgan Chase Bank’s formal application to patent what amounts to a variation on blockchain technology.

ON the other hand, Goldman Sachs optimism on cryptocurrencies and its derivatives trading is likely to add a domino effect in Wall Street circles, said Blockchain Capital partner Spencer Bogart. He considers that the Goldman Sachs decision will snowball into other banks, and not just because they’re following the company’s lead.

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