According to a Bloomberg report, Galaxy Digital Holdings founder Mike Novogratz believes that crypto institutional investment will be coming by next year.

If this were to be the case, digital coins would most likely rally significantly.

Crypto Institutional Investment

In an interview with Bloomberg Television, the crypto magnate said the following about digital currency, which he dubs ‘smart money’:

“All the architecture that institutions need to feel comfortable with this is being put in place […] You’re going to start to see custody come online.”

Crypto Institutional Investment Needs Custody Solution

The movement would require “custody solution from the likes of Fidelity,” which, according to Novogratz, already has 200–300 customers interested in crypto investment.

Custody solution for cryptocurrency is effectively the same as needed for fiat currency, whereby a brokerage or other financial institution holds securities on behalf of the client.

But safeguarding digital assets is a bigger ask, as prices fluctuate wildly and coins are at risk of being hacked.

But if the right custody solutions are in place as Novogratz suggests, then institutional investment could start happening in the digital-asset space.