According to Skybridge Capital founder and CEO Anthony Scaramucci, the institutional investment boom in cryptocurrencies has not yet taken place.
Even though there has been a lot of talk of significant institutional investment in cryptocurrencies, in particular bitcoin, since last year (when the new bullrun was triggered at the end of 2020), Scaramucci argues that there has been no institutional investment boom at all.
Anthony Scaramucci: fund managers 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 already invested in cryptocurrencies, and says:
“The institutions are not there. Anybody who’s telling you there’s institutional adoption into this space is not being totally honest — or they’re seeing something that I’m not seeing”.
There are some big names that have entered this sector, but they would still be few and with very little capital.
According to Scaramucci, price volatility and regulatory uncertainty are keeping many asset managers away from the crypto sector and raising doubts about the suitability of cryptocurrencies for retail investors.
He also argues that eventually, some big bank might buy Coinbase, or something similar, to make the transformation faster than people think.
Scaramucci is actually a supporter of Bitcoin, so these words of his should probably be interpreted as some sort of bullish prediction.
New institutional investors
Last year, at the end of September, the price of BTC was around $10,000, but it later rose to over $40,000 in early January.
At the time, many said that this rise might have been caused by institutional investors, but shortly afterwards the price soared again, first to over $50,000 and then to over $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 in the late 2020s was marginal, suggesting that it could be even greater if they decide to get serious sooner or later.
Skybridge’s founder is thinking long term.
He does not necessarily foresee massive institutional entry into the crypto markets any time soon. From what he has said about Bitcoin over the years, it is clear that his assessment of this new financial asset is hardly about how the price of BTC will change in a few months, but rather how it will evolve over the next few years or even decades.
There is still plenty of time before institutional investors can be convinced to enter these new markets en masse, as they have done in the past for other emerging markets once they have become commonplace.
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