Anthony Scaramucci, CEO of multi-asset class investment firm Skybridge Capital, said he thinks the growth of institutional investment in cryptocurrency has been greatly exaggerated. In an interview with Bloomberg last week, Scaramucci said most companies are still not interested in cryptocurrency as an investment and only 10% are actively investing in crypto.
Anthony Scaramucci thinks companies are still not big on crypto
Anthony Scaramucci, CEO of Skybridge Capital, thinks there is still a long way to go until Bitcoin and cryptocurrency are adopted by institutional investors. In an interview with Bloomberg, Scaramucci said that, in his experience, only 10% of the institutional world is actively investing in cryptocurrencies. Although it may be a minority, according to Scaramucci, it is a minority that has some influence. The founder of Skybridge Capital says the situation looks like a “feeding frenzy”.
The investor says:
Institutions do not exist. Anyone who tells you that there is institutional acceptance in this place is not entirely honest – or they are seeing something that I am not seeing.
The idea is that the whole cryptocurrency bull market has been pushed by most retail investors, and when companies really enter the crypto space, they will greatly encourage it. However, instruments like ETFs will play a major role in achieving this goal.
The future of DFI and institutional investment
One of the big issues driving the cryptocurrency market this year is decentralized money. The ability to transact and access financial services without intermediaries is a key feature of this sector. Scaramucci thinks it could attract more organizations into space in the long run.
But whatever it is, companies still have reason to be wary of investing in cryptocurrencies. Some feel that there are no clear rules in this sector, something that has been criticized by many actors who are currently facing lawsuits in crypto-related cases such as Ripple. This month, Coinbase, one of the US-based cryptocurrency exchanges, was stopped on its tracks by the SEC when it sought to launch a crypto-based nding product. The latest Chinese crypto ban also affects investors’ perceptions of these materials.
However, there has been an increase in attention to cryptocurrency from large institutional firms such as Goldman Sachs, JPMorgan and Fidelity, which have begun offering crypto services to their customers.
What do you think of Anthony Scaramucci’s views on institutional investing in cryptocurrencies? Tell us in the comments section below.
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