Kevin O’Leary, a well-known investor and chairman of O’Shares ETFs, believes that the slow adoption of crypto assets by institutions is not affected by the fluctuations as it is perceived widely. He revealed that the regulations on crypto are the major concern of institutions as the regulators are keeping a close watch on the cryptocurrency space.
Acknowledging the fact that the regulatory environment is evolving rapidly, he said that the institutions are making sure that they won’t face any legal issues before getting involved with crypto assets.
As addressed by Shark Tank, if institutions get around the acquiescence issue, then nothing would stand in the way of Bitcoin to attract trillion-dollar investments.
“Real institutional capital is not scared about volatility, it’s not scared about disclosure issues–it is scared about compliance…I think the institutional interest is massive. There are a trillion dollars of interest just in Bitcoin. If they could get around the compliance.”
Due to the tightened regulatory crackdown, the institutional interest in Bitcoin has slowed down in recent weeks.
Most recently, China banned the trading and mining of Bitcoin in some areas due to the conception that Bitcoin can potentially destabilize the structure of the financial system.
In addition to this, another major concern related to the flagship currency is the carbon footprint issue, and it is really harmful to the environment.
Moreover, it should be noted that in recent days, Bitcoin has managed to shake off the fluctuations in its price by sustaining a short-term rally.
As reported by some leading market data aggregators, Bitcoin has gained around 20% and at the time of writing this article, it is changing hands at $44,667.