BlockFi co-founder Flori Marquez discussed institutional interest in cryptocurrency in a recent interview. She said that several businesses are providing crypto-focused financial solutions, and she went on to say,
“I believe the most pressing issue right now is whether crypto-based financial products should be handled differently than conventional financial products.”
It basically meant connecting the "worlds of conventional banking and crypto" in this sense. She also said that “state and national regulators' involvement is a very good step for the industry.” She also expressed her gratitude for the market's evolution over the past four years, saying,
“I believe the landscape has changed significantly.”
However, Marquez said, "Among the numerous voices that consider a lack of regulatory certainty a barrier,
“A lot of individuals are sitting on the fence right now, waiting for regulatory certainty before becoming involved...”
There is a subset of investors known as institutional investors. According to the co-founder of BlockFi, it is now simpler to obtain financing for crypto companies than it was a few years ago. She stated that, back in the day, there was a big gap in obtaining initial financing because,
“Then there were the crypto VCs, who were mostly interested in blockchain and didn't know anything about financial products...”
She, on the other hand, believes that a major financial institution that does not have a crypto research desk today is likely falling behind. In contrast, Anthony Scaramucci, the founder of SkyBridge Capital, recently said that a significant percentage of money managers continue to avoid cryptocurrency investments.
However, despite the asset's volatility and risk, a new study article claims that it provides diversification advantages. Seven out of 10 institutional investors want to invest in cryptocurrencies in the future, according to a Fidelity study. Regulatory worries, however, are putting some investors on the sidelines, as Marquez pointed out.
According to CoinShares' weekly report, investors saw the latest China ban as a buying opportunity. According to the data, inflows totaled $95 million in the week ending September 27. The institutions' total asset under management (AUM) is at $52,646 million.
Grayscale has been leading the AUM race in recent months, according to the latest CryptoCompare Report. Companies like ARK Investment and Horizon Kinetics have shown interest in Grayscale Bitcoin Trust (BTC).
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