Wall Street’s ‘Crypto King’ Says Regulatory Clarity Will Jump-begin Institutional Investments
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Bart Smith, who was crowned “Wall Street’s Crypto King” by CNBC, is optimistic that institutional investors will start pouring cash into the cryptocurrency industry after far more regulatory clarity is provided.
Smith heads the digital asset group at Pennsylvania-primarily based investment firm Susquehanna International Group, which initial experimented with bitcoin trading in 2014.
Since then, the privately-held organization has launched a crypto trading desk manned by a dozen traders who purchase and sell millions of dollars in bitcoin and other cryptocurrencies every day.
“We have a committed team of traders and technologists,” he told CNBC. “We’ve been trading bitcoin primarily, but in 2017 as the marketplace expanded, we expanded the quantity of coins we have been trading and the number of exchanges we had been delivering liquidity on.”
Smith added: “We are trading on average a couple hundred million dollars a day [on bitcoin futures] across CME and CFE combined that’s not retail.”
A lot more Or Significantly less Regulation Is Not the Concern
Smith says cryptocurrency evangelists shouldn’t focus so considerably on no matter whether or not there need to be regulation, but moreso on the importance of regulatory clarity.
“There’s a huge debate going on about regardless of whether there ought to be more or significantly less [crypto] regulation. From our standpoint, it’s really about regulatory clarity,” Smith noted. “There has been a tremendous amount of focus on the SEC and Chairman Clayton’s comments. But it’s actually a complete host of other regulatory agencies out there, since the ecosystem expands beyond the standard monetary assets.”
Wall Street has a new crypto king, and right here's what he stated about the enterprise of #Bitcoin $BTC pic.twitter.com/AJ09IFfiTE
&mdash CNBC's Rapidly Funds (@CNBCFastMoney) June 6, 2018
“[Regulatory] clarity will enable institutions to come in much more than something else due to the fact institutions don’t like to invest into uncertainty. So we’re just taking the most conservative strategy that we can.”
‘We’ve Been Advocating For a Bitcoin ETF’
Smith stated that Susquehanna is bullish on bitcoin ETFs — exchange-traded funds that offer retail investors with exposure to bitcoin’s value movements with out custodial risk — since he believes they are an ideal automobile for investing in virtual currencies.
“We’ve been advocating for an ETF,” he stated. “We think it checks lot of the boxes for regulatory issues, particularly as it relates to retail investors. And it checks a lot of boxes for institutional clients as far as custody and taxation and anti-cash laundering and know-your-client [issues].”
Smith stated if crypto bulls want to make bitcoin ETFs come about, they must ensure they meet regulatory muster as outlined by SEC chairman Jay Clayton. “Chairman Clayon has created his concerns really clear, and it’s up to us in the ecosystem to address these concerns,” he mentioned.
When asked if there’s a correlation among the stock markets and the crypto space, Smith said he doesn’t feel so, in spite of reports that have shown a correlation in between their movements.
“We have not noticed considerably correlation at all between the equity and bitcoin markets,” Smith stated. “Trading cryptocurrencies is way much more analogous to other asset classes than you may possibly feel from a market maker’s perspective, managing danger and the operational sides of it. But as far as the investor demand for it, and what drives bitcoin and other cryptocurrencies, we have yet to find much analogy in the driver of it.”
Smith said that what drives bitcoin prices differs from what moves the equity markets due to the fact crypto is not an institutionally-driven marketplace like the S&P 500.
As for bitcoin’s wild value swings, Smith mentioned BTC is trading solidly in the range of $six,000 to $9,000 — at least for now.
Seeking ahead, Smith is exceedingly confident in the future of crypto, as CCN has reported. &ldquoWe think that this technology and this asset class is going to change some facet of financial solutions, and we consider it is going to exist forever,&rdquo he said.
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Published at Sat, 09 Jun 2018 01:00:35 +0000