Institutional adoption — good, bad, or ugly?

Even in a bear market, institutions are gearing up to expand their crypto trading offerings.

The news in the past week or so has seen Fidelity announcing access for their clients and now institutional behemoth Broadridge Partners will route crypto order flow via Coinbase Prime.

Hundreds of millions of dollars are being invested for crypto development.

Gemini is advertising on NYC digital billboards.

The good — This should be great for more mainstream adoption, greater liquidity, and eventually prices (especially for those tokens with a fixed/limited supply.)

The bad — And yet I’ve got a spidey-sense level of dread that once the floodgates are open there’s going to be a wave of problems — new scams, over regulation, complex financial shenanigans.

The Ugly — Not that there isn’t already a ton of market manipulation going on already, but Wall Street traders with access to a full suite of leveraged, perpetuals, options, and crypto shorting capabilities seems like a terrible idea.

Retail traders could get swamped by incredible volatility.

The HODLers should be fine, maybe even better off in the next bull run (all of this new money may propel incredible ATHs.)

And yet, it’s going to be a rocky road . . .