Bitcoin adoption threatened by Schwab-Ameritrade deal, claims Bitcoin bull
One of the main catalysts to Bitcoin’s adoption in the more fearful financial circles is institutions. Big pocketed banks are the perfect on-ramp for the wider trade of cryptocurrencies, with one prominent harbinger being TD Ameritrade.
But one Bitcoin bull isn’t convinced.
The $26 million deal between Charles Schwabb and Ameritrade would put Bitcoin adoption in dire straits, according to Mike Novogratz, founder of Galaxy Digital.
As the cryptocurrency steadily grows in price and use, the wave of adoption will swing to institutional investors. Registered investment advisors will soon embrace the cryptocurrency, provided the infrastructure for such investment is built, said Novogratz.
The two frontrunners for the institutional push into Bitcoin trading are Fidelity and TD Ameritrade. In October 2018, Fidelity launched Fidelity Digital Assets, dedicated to cryptocurrency trading. Ameritrade soon followed.
The Omaha-based brokerage giant is more bullish than most on digital currencies. Back in April, TD Ameritrade was testing paper-trading of Bitcoin and Litecoin on Nasdaq. ErisX, backed by TD Ameritrade with asset management firm VanEck, was one of the front-runners for the Bitcoin exchange-traded fund [ETF].
But Novogratz suggested that Ameritrade’s push for Bitcoin trading was halted following talks of a merger with Charles Schwab.
While optimistic that institutions will move to rather than away from Bitcoin trading, he is surprised that it hasn’t happened yet. At the aforementioned conference, the Galaxy Digital co-founder stated that Bitcoin adoption at the institutional level is “happening a lot slower than I thought.”
Ever the Bitcoin-bull, Novogratz, at the close of 2019, suggested Bitcoin will end 2020 at $12,000. The cryptocurrency is well on course to reach that target, having broken $9,000 and consolidate over its 200-day MA this week.
Novogratz isn’t too bullish on the altcoins though, adding that he would go short on everything that is non-Bitcoin.
He concluded by stated that Bitcoin is a “beautiful speculative asset” and its prospects of digital gold “sexy.” The “crypto-revolution” however, in the investor’s opinion, is “not going to happen.”