The next wave of crypto adoption is here, and it’s bigger than the last one

Cryptos are on the move again. This time, high-net-worth individuals, family offices and fund managers are driving it.
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Bitcoin touched R1 million early in November, marking another milestone in a long march of milestones.

When bitcoin broke through R300 000 at the end of 2017, it was deemed a ‘bubble’ waiting for a pin. In 2018, bitcoin indeed dropped 84% before commencing its climb to R1 million.

Bitcoin came within a whisker of R1 million in April this year before dropping more than 50%.

Jon Ovadia, CEO of crypto company OVEX, says the recent rally in bitcoin differs from previous rallies in that much of the buying is coming from high-net-worth individuals (HNWIs), family offices and wealth managers.

“This is a trend we started to see on a smaller scale about a year ago, but it really picked up steam this year,” says Ovadia.

“Traditional investors exposed to the stock market have seen the kind of outsized returns that are being made in cryptos and they are pushing their wealth managers to give them some exposure to cryptos, even if it is just 2% or 5% of their total investible wealth.”

Bitcoin is up more than 300% so far this year, and Ethereum 1 000%. Other cryptocurrencies like Cardano and Solana are up 1 827% and 16 000%.

“In prior bull cycles, these massive returns could be dismissed as speculative bubbles that were simply unsustainable. Well, we’ve been through years of so-called speculative bubbles and still cryptos are on the march. It’s become clear that you can no longer ignore the massive wealth creation that is taking place in cryptos,” says Ovadia.

OVEX is well known as a market leader in crypto arbitrage – where investors can profit from pricing differences in cryptos between overseas exchanges and OVEX.

The larger part of its business is an over-the-counter (OTC) for handling large crypto trades. “We have access to deep liquidity, so clients who want to purchase one, 10 or 100 bitcoin can do it through our OTC desk at very low rates,” adds Ovadia.

Wealth managers are enquiring about owning bitcoin and how to earn passive income through ‘staking’ (where cryptocurrencies are put to work on the blockchain in return for rewards) or from arbitraging cryptocurrencies.

“Two years ago, wealth managers regarded cryptos as something strange and exotic on the fringe of the investment world.

“Responsible wealth managers were keeping a close eye on cryptos a year or two ago, but now they are committing with real money. They can no longer afford to stand on the sidelines.”

Earning passive income

While cryptocurrencies such as bitcoin are notoriously volatile, OVEX offers clients interest accounts paying between 4% a year for bitcoin, and up to 10% a year for stablecoin Tether USD. For clients depositing more than R500 000, OVEX will quote you higher rates of up to 20% (find out more here).

The ability to purchase large crypto volumes

For wealth managers and HNWIs, purchasing large volumes of bitcoin and other cryptos on a traditional exchange can be slow and uncertain. OVEX has removed that inefficiency through its OTC desk, which can handle large volumes – for example, upwards of 50 or even 100 bitcoin – that could take days to fill on a regular exchange, with all the price slippage and friction that entails.

Click here to begin investing in cryptocurrency with OVEX.

More than 50 crypto pairs to choose from

OVEX has more than 50 crypto pairs that can be purchased on its RFQ (Request for Quote) page. The selection includes the larger cryptos such as bitcoin, Ether and Solana as well as some smaller ones that have outpaced the broader market in the course of 2021.

Brought to you by OVEX.

Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.

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