Institutional investors coming into the space has its downsides and upsides. For downsides, they only care about their investment and taking profit - they have zero concern for the technology, its community or users.On the other hand, institutional investors contribute to the overall growth of Bitcoin's value + the effect that prompts other institutions to follow suit.
2. What services are institutions providing in the Bitcoin space?
Answer : Institutions in the Bitcoin space are providing services such as crypto custody, where they securely store and manage Bitcoin holdings on behalf of clients.
Anything other than self custody is bad for the space. We have seen the cascading effect the Luna -> UST collapse had on a number of custody and interest yielding instructional companies and firm. It caused the entire crypto market to have a negative outlook.