Crypto Bull Run May Have Already Started, Says One River CEO
Eric Peters – CEO of One River Digital Asset Management – believes the next crypto bull run will be “very powerful” because it will be driven by institutional adoption.
He argued that the market may have already moved to such a phase.
“Extremely bullish” in the long term
In a recent look on the Bankless podcast, Peters opined that the crypto winter is already in the past, describing last year’s throwback to the 1929 Wall Street Collapse (also known as the Great Crash):
“I’m thankful that we’ve navigated through this bear market, and it was really kind of a 1929 crash environment.”
One River’s executive said he is “extremely bullish” in the medium to long term, and believes large institutions will take part in the next cycle:
“I think the next phase will be very powerful because it will actually finally get real institutional adoption.”
Peters suggested that the bull run may have begun, and outlined the market rally since the beginning of the year. Bitcoin ended 2022 at around $16,500, while currently trading at roughly $22,400 (a 35% increase). It even rose to $25K in February, a valuation last recorded in June 2022.
According to the American, one factor that currently stops institutions from diving into the crypto ecosystem is the regulatory uncertainty. When the US, Europe or Canada impose proper regulations, institutional capital should flow towards the industry, while financial companies can integrate blockchain technology into their operations, he argued.
Peters saw some benefits to the devastating plunge in the cryptocurrency market in 2022, as it gave people important trading hours. He advised prospective investors to jump on the bandwagon only if they are prepared for the volatility and the different cycles. He concluded that those who endure the turbulence will profit in the long term and understand how the economy generally works.
The deal with Coinbase
The US-based cryptocurrency exchange – Coinbase – acquired One River Digital Asset Management a few days ago without disclosing the terms and sum of the agreement. As a result, the latter will be renamed Coinbase Asset Management, while Eric Peters will continue to serve as CEO and CIO.
Greg Tusar – Coinbase’s head of institutional products – said the deal aims to attract more institutional capital into the sector as One River focuses on such clients.
The two units collaboration in mid-February on a new SMA offering, called ONE Digital SMA, to provide registered investment advisors and private wealth platforms with better crypto exposure and opportunities.
