What QuadrigaCX Says About Institutional Crypto Investment

The following article originally appeared in Institutional Crypto by CoinDesk, a newsletter for the institutional market, with news and views on crypto infrastructure delivered every Tuesday.

None of those worries are top-of-mind for institutional investors these days when it comes to their crypto investments.

Along with most of the blockchain sector, they're more engrossed in the drama unfolding around the death of the CEO of a Canadian crypto exchange.

In case you missed the story on CoinDesk, the CEO of beleaguered Canadian crypto exchange QuadrigaCX, which was already in trouble because of frozen accounts, passed away unexpectedly in India in December.

It's this: The crypto market is the only market out there at the moment where operational risk is greater than market risk.

The nascent crypto market is still largely unregulated, as official institutions around the world wrestle with the choice between fitting the new asset class into existing obligations, or creating new ones.

This unique condition of the crypto market is not a disadvantage.

While improving the security of crypto holdings may seem like a basic beginner step, the chance to participate in the creation of a new asset class is rare.

Crypto infrastructure continues to evolve, and any interest that has been scared away will return as the sector's increasing professionalization calms concerns over operational vulnerabilities.

Eventually, institutional investors in crypto assets will be able to get back to doing what they do best: fret about market risk, and take positions accordingly.