BitGo Closes New Series B Funding, Advances Cryptocurrency Services for Institutional Investors

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BitGo Closes New Series B Funding, Advances Cryptocurrency Services for Institutional Investors

BitGo, which provides institutional-grade custodial accounts and multi-signature wallets, has recently closed a $57.5 million USD Series B fundraising round that included investors like Goldman Sachs and Mike Novogratz.

Goldman Sachs and Novogratz’s Galaxy Digital Ventures combined investments reached around $15 million USD and the new fundraising round brings BitGo’s total funding to around $70 million USD. Goldman has previously announced that they would be launching their own cryptocurrency custodial service, but has yet to do so and Mike Novogratz has been a longtime advocate of cryptocurrencies on Wall Street.

BitGo enjoys a certain state of necessity for when/if institutional investors get into cryptocurrencies since it is US law that money managers that handle over a certain amount of funds have to trust custodial services to administer clients’ money. Additionally, traditional custodial providers have been too weary to enter the cryptocurrency sector so far. This also comes as Fidelity has launched their own custodial service.

Demand for cryptocurrency services are mixed

At first, the large investment by mainstream financial types would appear to be a signal of rising investor confidence in future demand for these cryptocurrency services geared towards other investors. However, the market has not been homogeneous since Coinbase recently announced they will shutdown their Cypto Index Fund after less than a year due to lackluster demand. Instead, Coinbase will be offering Coinbase Bundle, which will provide diversification options to all investors with a minimum of $25 USD investment as opposed to the $250,000 USD minimum with the Crypto Index Fund. The changing market does signal a reallocation of resources to goods and services that investors believe to have more popularity.

The mainstream hype in cryptocurrencies has decreased significantly from the all-time exchange price highs, which is to be expected, but the fact that prominent investors are still investing in cryptocurrencies is a positive sign. These investors have done their due diligence and most likely realized that even though demand has wavered, there is still future growth potential and returns in cryptocurrencies that warrants their investment.

Dash is well positioned for future growth

Dash was integrated into BitGo recently, which makes their Series B perfect timing since as BitGo uses the money to expand and continue their services, Dash will be offered as an option to investors entering the platform. This increases the exposure of Dash to many individuals that will be able to recognize its future growth potential.

Dash can appeal to investors of all types because of its rapid growth and usability in everyday transactions around the world. Additionally, Dash Masternodes, which payout rewards in exchange for helping secure and enhance the network by staking 1,000 Dash, are becoming increasingly available to all classes of investors through shared Masternode pools offered by Neptune Dash and CrowdNode. Furthermore, Neptune Dash is a publicly traded company, which allows investors to gain exposure to Dash through traditional financial routes. Overall, Dash continues to expand user adoption in a bear market due to its significant focus on inexpensive, fast, decentralized, and peer-to-peer everyday transactions. This allows users to look past the price and focus on how they can earn and use Dash to buy goods and services more efficiently than with traditional methods.

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