- Skybridge Capital’s Scaramucci says institutional support has not yet arrived in crypto
- Anthony Scaramucci says large-scale investors await regulatory frameworks
SkyBridge Capital CEO Says About 10% of Financial Firms are in BTC
Anthony Scaramucci, founder and CEO of hedge fund SkyBridge Capital, thinks bitcoin is still in the early stages of development. In other words, it needs more growth to be considered a separate asset class and grab the attention of investors. In an interview with Bloomberg, Mr. Scaramucci shared how he saw bitcoin progressing among the large-scale investment world.
“The institutions are not there. Anybody who’s telling you there’s institutional adoption into this space is not being totally honest. They’re seeing something that I’m not seeing,” he said in his comments. Moreover, he said that only about 10% of institutional investors are now exposed to bitcoin and the cryptocurrency market.
In more detail, that would mean the stratospheric rise in the cryptocurrency market has largely been powered by retail investors.
Big Investors Await Regulatory Approval
Anthony Scaramucci, a devoted bitcoin proponent, cited several reasons for big financial players to hold out at the moment. One of them is the lack of a regulatory framework that should provide at least a basic level of investor protection. The other one, he argued, is the price volatility of bitcoin and other major cryptocurrencies.
Retail crypto investors are used to these two factors. On the other hand, institutional investors would like to have these sorted out. However, demand is not missing. On that note, several top investment banks in the US are already involved in crypto. They have stepped in by introducing certain types of financial products that allow investors to speculate with bitcoin’s price. Goldman Sachs and JPMorgan have started offering bitcoin-related services to their institutional and individual clients.
Crypto proponents are confident that once regulations are introduced, institutional investors will flock to the fast-emerging cryptocurrency market. As a result, this will help make the digital asset space reach higher levels of mainstream adoption.