The impending launch of Intercontinental Exchange’s digital asset platform, Bakkt later this year has contributed to a rising degree of confidence in the cryptocurrency market, especially from many institutional investors. This is a sentiment that is shared by many in the cryptocurrency business as well, including EXMO Exchange’s Sergey Zhdanov.
EXMO Exchange, based in the U.K is one of the largest cryptocurrency exchanges of its kind in Europe and boasts a user base of 1.5 million customers and an average monthly trading volume of $1.5 billion. In an interview released on the exchange’s Medium channel, CEO Sergey Zhdanov shared his thoughts on what the release of Bakkt would mean for the cryptocurrency market in 2019.
Zhdanov in his interview suggested that with the release of Bakkt, more and more interest from institutional investors is likely to be generated in the cryptocurrency market. However, contrary to some who fear that rising institutional interest will generate an equal degree of regulation, Sergey Zhdanov has welcomed it instead and said,
“I am convinced that regulation will unambiguously stimulate the market.”
While lauding the fact that Bakkt will offer more liquidity to the cryptocurrency trading market and will allow investors to trade in futures and options, Zhdanov also suggested that greater institutional interest will be a tangible success for the market. Furthermore, he claimed that cryptocurrencies offer most investors the best option to diversify their portfolios.
However, Bakkt wasn’t the only issue Sergey Zhdanov spoke on. He also dismissed notions about the misplaced perception that cryptocurrency exchanges have the most protected position in the cryptosphere and are guarded against the risks and volatility of the market.
Finally, commenting on the likely state of the cryptocurrency market in 2019, Zhdanov stated that the hype about cryptocurrency is finished. Instead, the stage of consolidation has arrived where smaller players may leave the crypto-space because of falling profits, he said. Talking on the issue of regulation of crypto-space again, Zhdanov ended the interview by saying that the cryptocurrency market is likely to be in for a rapid expansion in terms of value if government-mandated regulations are able to minimize the risks associated with cryptocurrencies.