Institutional interest in cryptocurrency remains despite regulatory crackdowns and exchange collapses

02/24/2023 22:57 • AI & Tech Insights • 75 views

It is reported that Judica Chou, head of over-the-counter (OTC) options trading at Kraken, said that the collapse of the FTX cryptocurrency exchange and the recent regulatory crackdown by the United States Securities and Exchange Commission (SEC) did not stop the interest of institutions in cryptocurrencies. She said that the cryptocurrency exchange is working with different customers. “They are trying to gain directional exposure.” They see “possible assets, short-term and long-term investment opportunities.”

Kraken OTC Trading Director: Investors are still interested in cryptocurrencies and bets

Interpretation of the news:

The cryptocurrency industry has been facing an unprecedented level of scrutiny and regulatory crackdowns in recent months. However, according to Judica Chou, the head of over-the-counter (OTC) options trading at Kraken, institutional interest in cryptocurrencies remains strong.

Chou said that the collapse of the FTX cryptocurrency exchange and the regulatory crackdown by the United States Securities and Exchange Commission (SEC) did not dampen the interest of institutions in cryptocurrencies. Kraken, which is one of the oldest and largest cryptocurrency exchanges in the world, is working with different customers who are looking at gaining directional exposure in the cryptocurrency market. These customers are reportedly exploring possible assets, short-term and long-term investment opportunities in the digital asset space.

Kraken’s perspective on institutional interest in cryptocurrency is supported by recent data from other sources. For instance, a recent Fidelity survey found that almost 80% of institutional investors see something appealing about the cryptocurrency market. Another report by JPMorgan found that the total assets under management in cryptocurrency funds have reached $57 billion, a significant jump from $1.4 billion recorded in 2019.

The growing interest of institutional investors in cryptocurrency is seen as a positive development for the market as it could help to increase liquidity and promote mainstream adoption. Institutional investors also tend to have a longer investment horizon, which could help to stabilize the volatile cryptocurrency markets.

However, the regulatory environment remains a major concern for institutions looking to invest in cryptocurrency. Both the SEC and other regulatory bodies around the world have been cracking down on cryptocurrency-related activities, including initial coin offerings, exchanges, and blockchain-based projects. The industry hopes that regulatory clarity and greater oversight will help to boost confidence in the market and encourage more institutional investors to participate.

In conclusion, while the regulatory crackdowns and exchange collapses have created challenges for the cryptocurrency industry, the interest of institutional investors in the sector remains strong. Institutions are exploring possible assets, short-term and long-term investment opportunities in the market, signaling that they believe in the long-term viability of the digital asset space. However, regulatory clarity remains crucial for institutional investors to feel confident and secure in deploying capital in cryptocurrencies.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/ai/2945.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.