Alexander Höptner, the chief executive of BitMEX, discussed his thoughts on the outlook for cryptocurrencies and how institutional investors are still buying into them.

During a panel discussion at the Token2049 conference held in Singapore on September 28, Alexander stated that there has been no slowdown in the institutional push into cryptocurrencies.

He noted that finance industry players and institutions usually use bear markets as an opportunity to innovate. Despite the pressure to deliver during a bull market, bear markets provide an opportunity for more time.

According to Höptner, the long-term outlook for the finance industry is very positive, which is why institutions are still buying into cryptocurrencies. On the other hand, the retail sector is still in its early stages of adoption.

He was then asked if the bear market would end, and he noted that retail is still pulling out. He said that institutions are making a push to provide services, and retail will eventually come back and support them once more.

He noted that institutions will start backing Ethereum once it has switched to a proof-of-stake system. This will satisfy the ESG concerns.

He also noted that building financial products using blockchain technology is the ideal way to comply with ESG regulations.

The importance of ESG conformity is still at the forefront of the minds of financial institutions. He noted that they can now offer products that are designed to meet the needs of a wide audience.

According to Höptner, the $3,000 figure was mentioned by year-end, and he noted that it could be a possibility due to the increasing number of banks and other financial institutions using the network. At the moment, ETH is trading at around $1,336, and it has a long way to go before it can reach this level.

According to a report by Cointelegraph, liquid staking products, such as the one from Lido, are more capital-efficient and profitable than holding regular ETH. This could mean that holding regular ETH could eventually become obsolete.