- SBF believes that greater regulatory clarity will push more institutional players to the crypto space.
- Amid rising fiat inflation fears, billionaire investors are putting more money into crypto as a hedge.
Sam Bankman Fried, the founder of crypto exchange FTX is bullish about institutional money coming into crypto for the year 2022. In his recent interview on Monday, January 3, with Bloomberg, SBF said that expects greater clarity in terms of crypto regulations worldwide. Thus, it will be enough to stimulate greater institutional adoption of digital assets in subsequent years.
Furthermore, despite the unexpected end to 2021, the FTX founder remains optimistic for 2022. During his Bloomberg interview, SBF said:
The things that make me optimistic basically are more regulatory clarity in the US and globally which I think could help a ton on institutional adoption. A lot of it depends on exactly what happens on the regulatory front as well.
We have already seen greater institutional adoption for digital assets in 2021. Also, big corporations and the likes of Tesla (NASDAQ: TSLA) have added digital assets like Bitcoin to their balance sheets. This has further pushed big financial giants to take a closer look at crypto investments.
SBF’s confidence stems from the fact that many big institutions have already started with massive crypto adoption. He said: “Basically every large financial institution I’ve talked to, every large bank, every large investment bank, pension funds, they’re all eyeing this sector.”
SBF is not the first to say that regulatory clarity will further drive institutional adoption. Many market analysts have a similar opinion. Thus, they believe that regulations will do overall good to the crypto market investors.
SBF believes that this will rather be “a long process, probably stretched out over a few years”.
Fiat inflation fears drive billionaire to crypto
More and more billionaire investors are looking at crypto investments going ahead. The fact that inflation is rising at a very rapid rate is forcing billionaires to move away from liquid fiat holdings. Thus, many investors are seeing crypto as a hedge against this inflation.
Hungarian-born billionaire Thomas Peterffy, worth a staggering $25 billion, said that one should put 2-3% of their portfolio in case “fiat goes to hell”. Peterffy’s firm, Interactive Brokers Group Inc. has already started offering crypto trading to their client since mid-2020. The firm currently allows trading for Bitcoin, Ethereum, and plans to add support for ten more altcoins very soon.
Peterffy’s currently holds an undisclosed amount of crypto. He holds a balanced view on crypto-assets stating that some might give “extraordinary returns” and others might go to zero. “I think it can go to zero, and I think it can go to a million dollars. I have no idea,” he added.