What Level of Institutional Entry in the Cryptocurrency Market? Anthony Scaramucci Explained

Crypto investor Anthony Scaramucci said that, contrary to what some Bitcoin bulls say, major financial institutions are showing little interest in digital assets.

“Institutions are not there,” Scaramucci told Bloomberg in an interview that aired over the weekend.

“If someone is telling you that institutional investors are getting into cryptocurrencies heavily, they are either dishonest – or they are seeing something that I don’t.”

SkyBridge Capital boss and former White House communications chief Scaramucci thinks that only 10% of financial institutions are involved, but that it has a huge impact.

Bitcoin has seen a nearly 300% increase in price over the past year alongside the rise in other major cryptocurrencies. Analysts see two major factors driving prices up: Governments have printed massive amounts of money during the coronavirus crisis and there has been a boom in retail investment.

Some major institutions have entered the crypto world, raising the hopes of Bitcoin fans for legitimacy for the world’s largest cryptocurrency. In July, JP Morgan announced that it would allow wealth management clients to access cryptocurrency funds. Goldman Sachs has relaunched its crypto trading desk.

Still, most of Wall Street stays away from digital assets. One reason institutions are worried is that they regularly have wild moves where prices fluctuate 10% a day. Another reason is that regulators are wary of crypto, as evidenced by China’s complete ban on digital asset transactions.

The cryptocurrency market rallied on Monday and recovered from Friday’s drop triggered by the Chinese ban. Tokens linked to decentralized exchanges such as sushi and uniswap led the recovery, gaining around 30% at one point.

However, Scaramucci said he thinks institutions will show more interest in decentralized finance (DeFi).

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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