The crypto ecosystem has been challenged 'no fewer than probably 100 times' over its lifetime. Here's why many institutions are still piling into the asset class, and what roadblocks remain.
- As the
cryptomarket continues to see its most notable boom yet, big companies in the sector have encouraged traditional Wall Street to venture into the space.
- The crypto market is "much healthier and much more two-sided" than ever, said one investment firm CEO.
- The conversation was part of Insider's virtual event, "Future of
Finance," presented by Grayscale.
All eyes have been on the crypto space this year as it has undergone its most notable boom in history. The volatile and often-polarizing space has drawn criticism from the likes of famed investor Charlie Munger while attracting capital from hedge fund legends Paul Tudor Jones and Ray Dalio.2021 may well mark an inflection point in the maturation of the nascent crypto ecosystem.
Sonnenshein 's comments were made during Insider's recent virtual event, "Future of Finance," presented by Grayscale, which took place on June 8, 2021."[Investors] are now seeing that there is no more stigma or any career risk associated with getting involved in crypto," Sonnenshein said. "They're seeing notable experienced investors getting involved in the ecosystem."
This panel, titled "Crypto - The Golden Child of
"I think this is where having incumbents like Coinbase and Grayscale who have performed over extended periods really helped to bring adoption from Wall Street," Abendschein said.
Sonnenshein said regulatory uncertainty is no longer an issue for investors. Chan, the moderator, pointed out that the US Securities and Exchange Commission has not yet approved a Bitcoin ETF despite longstanding efforts from the crypto community.Sonnenshein said that Grayscale first began dialogue with the SEC about turning its flagship fund, the Grayscale Bitcoin Trust, into a bona fide ETF, in 2016. Grayscale pulled out of the approval process in 2017 after realizing regulators "were just not yet ready" for such a product, he added.
"Some of the issues that regulators have cited around the crypto ecosystem are things like surveillance sharing, you know, these are the types of protections in monitoring that are in place for equities and other assets. And we just don't yet have that level of infrastructure around crypto markets and crypto order books and exchanges," Sonnenshein said.
Chan asked Abendschein about Coinbase's recent report on
Sonnenshein noted the abundance of research and educational materials available to investors interested in crypto. "I think any investor who is deploying capital into crypto today is certainly doing so I would say from the most informed vantage point that we've ever seen."
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