Coinbase, the biggest cryptocurrency exchange in the United States have recently opened an office in New York City. Instead of selling cryptocurrency to regular individual investors like it has been, the purpose of the New York City office is to attract and cater for the needs of institutional investors.
Coinbase has 6 different office locations and currently employs almost 700 people.
The New York office manages the recently launched Coinbase index fund which gives institutional investors the ability to invest in Bitcoin, Ethereum, Ethereum Classic, Litecoin and Bitcoin Cash. The minimum amount customers can invest currently stands at $250,000.
Located just a few hundred metres from wall street, the newest Coinbase office which currently employs 20 people, many of them recruited directly from traditional financial organisations such as the New York Stock Exchange is planning an enormous expansion plan.
According to Coindesk, Coinbase are planning to recruit a further 150 financial professional to work at the New York branch, suggesting institutional interest in cryptocurrency investing is growing.
“When we saw the market begin to correct, which we all expected, institutions didn’t lose interest,” Adam White, general manager of Coinbase Institutional, told CoinDesk. “It was exactly the opposite.”
The recent market down turn, though it may seem negative to most people, comes as a potentially lucrative opportunity for those looking to buy in.
Should the Bitcoin price for example return to its current all time high of $19,535, those buying in now would see around 400% return on their investment. Those kind of potential returns don’t go unnoticed by financial professionals and it’s no wonder Coinbase are investing heavily in catering for institutional investors.
Some anticipate that the Coinbase index fund will be like the Dow Jones of the cryptocurrency world.
Coinbase are working hard to make themselves the go-to for cryptocurrency. Targeting institutional investors, everyday investors, retail customers looking to accept cryptocurrency for their goods and services and expanding operations far and wide. They recently invested heavily in improving their customer service operations, and also released a list of 40 new potential cryptocurrencies they’re looking at supporting. They have plans to take on the asian market, recently launching in Japan, with further expansion planned for the near future.
Coinbase are clearly optimistic for the future of cryptocurrency.