Institutions will wade into crypto market in 2019, Luno suggests
The Naspers-backed cryptocurrency exchange is undeterred after the price of bitcoin plunged throughout 2018
Naspers-backed cryptocurrency exchange Luno expects institutions to start dipping their toes into the digital money market in 2019, despite a blistering sell-off of bitcoin and other flagship coins over the past 13 months. According to data from Luno’s South African exchange, the price of bitcoin slumped from a high of R264,825 in December 2017 to R52,582 on Wednesday. The global sell-off was sparked by panic selling, tighter regulations and several high-profile hacks, which caused trading volumes to slow significantly through 2018, though volatility has remained high. South African banks have taken a cautious approach to the fledgling cryptocurrency market, but have also been considering their options, including the establishment of dedicated trading desks. “Early adopters are institutions like Fidelity and Bakkt – that will get the momentum started,” said Marius Reitz, Luno’s country manager for SA. US-based financial services group Fidelity said in October 2018 it would launch a ...
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