Thread by @dunleavy89

This isn't the 2017/2018 cycle, the institutions are FINALLY coming to crypto

Here's why this time is different 🧵👇

The Infrastructure is Finally Here
-Custody: The quality of custody services was the biggest hurdle cited by institutional allocators for investing in crypto. We now have fintech players like @FireblocksHQ and the biggest custody banks like @StateStreet and @BNYMellon

The Infrastructure is Finally Here (cont.)
-Exchanges: @FTX_Official ,@coinbase, @binance etc. All now battle-tested with 8-9 figure trades
-Borrowing/lending: @goldfinch_fi,@maplefinance, @JoinMeow, giving out of the box min to over. coll. loans
-Research:@MessariCrypto +others

The Infrastructure is Finally Here (cont.)
Investible Vehicles: 100x the amount of available HF and VC vehicles for inst investors to pick from since 2017. 100x the builders fighting for this capital. Also more direct options. (one-day spot #BTC etf...)

Understanding and Interest in Crypto is Growing
-Institutional investors traded $1.14 trillion worth of crypto via Coinbase alone in 2021, 10 times the amount in 2020.
-Via @Fidelity and @NickelDigital 70- 80% of institutions are planning to allocate to crypto.

There’s Been Massive Venture Investment
-The biggest institutions generally allocate a few % of their portfolio to VC. Endowments over $1B specifically average 11%. In 2017 there wasn’t even $1 billion in crypto investments from VC In 2021 the industry did 11 times that in Q4.

There’s Been Massive Venture Investment (cont)
-In 2017 there was roughly $1-2B in venture and HF combined, focusing on crypto. In 2021 there were $33 billion in crypto investment in VC and over 800 HF allocating $68B. That's roughly 100 times the investment in the space from

The Money Is Actually Coming in
-Corporates are investing and not just @MicroStrategy. Allocations from @Tesla to @KPMG to @PIMCO
- Pensions and endowments were also big accumulators. The death of the 60/40 has helped here. BTC allocations up to 4% have min drawdowns, inc. ret

FOMO is real. Institutions that have invested in crypto outperform those that haven’t by 2.82% annually.

0verall this shift could add trillions in market cap

More in the piece on why now and the implications...

The full piece here messari.io/article/the-in…

The 7 day trial to Messari is your friend!