In a wide-ranging discussion on Real Vision, Genesis CEO Michael Moro discussed the barriers to institutional money entering crypto.
Genesis is one of the largest over-the-counter market-makers for bitcoin and altcoins, so Moro gave Real Vision an inside look at issues in the space.
First, Moro said that a lack of regulatory clarity has deterred institutional money from full-scale involvement. “The US knows that they are going to be the model for other countries to emulate and follow,” he said. “And so they’re going to take their time to figure out what the right policy is. Where the US has a ton of work to do is on the lawmakers. The folks in Congress still, while some of them are very knowledgeable, the vast majority of them are not.”
Additionally, he said that crypto trading still needs to be more normalized. Institutions have had a “difficult time mentally wrapping their head around the idea,” he said. “But as firms like Square, Fidelity, and Facebook begin to roll out products, it’ll make crypto trading normal. It’ll get more and more normalized to where it’s not as esoteric and strange anymore as it used to be.”
Moro also put forward the idea that while digital currency is a new asset class, “we’re all going after the same pool of investor money.”
“It’s the same endowments, hedge funds, family offices that invest in stocks, bonds, and gold that we’re saying to, ‘hey, have some allocation to crypto,’” he explained. “And, because of that, I’ve always felt that the investors in crypto are going to want the same products and services that exist in other markets. And so there’s a huge gap that still kind of needs to be filled.”
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