Institutional adoption of digital assets is “moving very, very fast,” and much faster than the pace at which infant industries typically developsays Coinbase Senior Advisor John D’Agostino.
In an October 18 interview with SALT moderated by Anthony Scaramucci, D’Agostino said that new asset classes are often slow to develop as “institutional inertia is a very real thing” and “there are many switching costs associated with the incorporation of new assets”, but that this has not been the case with cryptocurrencies:
“For me, for someone who spent 15 years trying to get commodities popular, it’s actually moving fast. But I understand someone in the heat of the moment feeling like it’s icy. But for institutions I think it’s moving very quickly. , very fast”.
As for what may have slowed institutional adoption, D’Agostino said that US regulators have been “accommodating” to the point of harming “the growth of technology”.
But interestingly, D’Agostino sees the “bifurcated regulatory regime” between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) “as a good thing” because “nobody fights for something that will disappear“.
“The fact that cryptocurrencies are being used as a bargaining chip by the heads of regulatory agencies [y] The fact that these public announcements are being made to drive a position around which regulatory agency will be in control is an indication that this is a vitally important piece of the market structure.”
D’Agostino was categorical in stating that an exchange-traded fund (ETF)for its acronym in English) Cryptocurrency-Related Will Finally Be Approved, Despite Continued SEC Rejections:
“I think that’s going to change. Despite the delay, an ETF is inevitable. I can’t say when it’s going to happen. But I know it will happen at some point.”
The co-founder and CEO of Singapore cryptocurrency exchange Coinhako, Yusho Liu, recently told Cointelegraph that expected institutional interest to continue to grow as industry matures.
“We believe that institutional flows in the market will continue to grow and serve as a crucial driver for future cryptocurrency innovation and adoption.“, said.
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