One of the main reasons why institutional investors do not place their investments in the crypto market is because they are waiting for clear regulations. Due to the lack of regulations it may take longer time for these wealthy investors to put their money in the cryptocurrency world.
Institutional Investors Need Regulations
One of the most important things at the moment of making an investment is certainty. Regulations bring these rules that allow undecided investors to feel safe in the market. 
But clear rules do not mean had regulations. It means having a legal framework in which to operate, where crypto-related businesses offer products that are legitimate and investors are covered in case there is a problem.
The S&P Dow Jones announced that they are not going to introduce cryptocurrency indexes, at least not in the short term. Even when they have been receiving lots of requests from customers, they will not be providing this solution.
Alex Matturri, Chief Executive Officer of the Index Provider, said:
“You don’t want an index that somebody is going to use in a product that either manipulates markets or is easily manipulated. If it’s meant as a tool for gambling, well, go to Macao or Las Vegas. That’s not what investing is about.”
At the same time, Barclays dismissed the chance of entering the crypto market as well. They’ve explained that they are not planning to launch a crypto trading desk in the next months. At the same time, the bank mentioned that the regulatory environment is still something that needs to be addressed:
“Cryptocurrency is a real challenge for us because, on the one hand, there is the innovative side of it and wanting to stay in the forefront of technology’s improvement in finance… On the other side of it, there is the possibility of cryptocurrencies being used for activities that the bank wants to have part of.”
Today, most of the virtual currencies are operating with gains, being Ethereum the top gainer (10.5% up) in the top 10 cryptos by market capitalization.
