Although there has been a lot of talk about significant institutional investments in cryptocurrencies, especially BTC, since last year (when the new bullrun began at the end of 2020), there has been no institutional investment boom at all, according to Skybridge Capital founder and CEO Anthony Scaramucci.
Anthony Scaramucci: Fund managers are still hesitant about cryptocurrencies
In a recent interview published by Bloomberg, he said that the vast majority of fund managers are still hesitant about cryptocurrencies and blockchain technology. He estimates that only 10% of traditional financial players have invested in cryptocurrencies, and says:
“Institutions are not there. Anyone who tells you that there is institutional acceptance in this sector is not entirely honest – or sees something I don’t see. “
Several big names have entered the sector, but there would still be few and very little capital. According to Scaramucci, price volatility and regulatory uncertainty keep many asset managers out of the cryptocurrency sector. He also claims that a large bank could buy Coinbase or something similar should happen to make the transformation faster.
Scaramucci is actually a big supporter of BTC, so his words should probably be interpreted as a bullish prediction.
New institutional investors
Last year, at the end of September, the price of BTC was around $ 10,000, but later rose to more than $ 40,000 at the beginning of January. At the time, many said the increase may have been due to institutional investors, but shortly thereafter the price rose sharply again, first to more than $ 50,000 and then to more than $ 60,000 in March.
This further rise was attributed to retail investors, influenced by the words and decisions of Elon Musk and Tesla.
According to Scaramucci, institutional intervention in crypto markets was marginal at the end of 2020, suggesting that it could be even greater if they take a serious decision sooner or later.
The founder of Skybridge has been thinking for a long time.
According to him, in the near future there will not necessarily be a massive entry of institutions into the crypto markets. Obviously, the valuation of this new financial asset is hardly about how the price of BTC will change in a few months, but rather about how it will develop in the next few years or even decades.
There is still plenty of time for institutional investors to consider entering these new markets, as they have done in the past in other emerging markets, as soon as they become commonplace.