Editors note: It's something the average cryptocurrency investor doesn't really understand - the concept of "custody". We like the idea that we control our private keys.
But when it comes to traditional markets, very few investors actually sit upon stacks of stock certificates to prove what they own - and they don't want to. Their brokerage firm does all that, and will want them to do the same for their crypto assets.
So, the 30 second version is: there's laws surrounding the storage of any valuable assets. How to do this in a way that would allow major Wall Street investment houses to offer cryptocurrencies to their clients, while at the same time meeting all the legal requirements surrounding custody, has been a massive challenge.
Outets like BitGo now have a solution, and the big players on Wall Street are showing serious interest.
It's one of the main reason those recent Bitcoin ETF applications were denied, but once addressed, may be the key to the next round of ETF applications getting the stamp of approval!
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