Crypto Market Will Keep Maturing As Institutional Investors Continue To Enter Crypto Market
The Chairman of CFTC, J. Christopher Giancarlo, believes that the launch of Bitcoin futures has contributed immensely to the increased stability of the cryptocurrency.
He further added that there has been a sizeable increase in institutional participation in the space and that this trend will help the crypto markets improve and mature.
Bitcoin futures helped the market stabilize
During an interview with Fox Business’s Maria Bartiromo, Giancarlo stated that the launch of Bitcoin futures and his agency’s do no harm strategy in allowing those products to begin trading in the face of criticism helped in stabilizing the market.
He noted that those two moves played crucial roles in pooing the Bitcoin price bubble and stabilizing the market over the past few months.
He stated on Friday, October 12 that according to the San Francisco Fed, it was the bitcoin futures emergence that actually busted the bubble in prices that started towards the end of last year.
It has led to Bitcoin achieving a more sustainable level than it experienced last year.
He was citing a research that was carried out by the San Francisco branch of the Federal Reserve which revealed that the Bitcoin futures launch triggered the decline in prices. It made that possible by providing institutional investors the opportunity to short BTC price.
Most crypto enthusiasts thought that the launch of CBOE and CME Bitcoin futures towards the end of last year would lead to the massive entry of institutional investors and propel the market toward even greater highs.
That hasn’t been the case though as the bear market has affected the prices of all the cryptocurrencies.
Bitcoin has been trading around the $6,000 region over the past few months, leading to most analysts decreasing their end of the year price target for the cryptocurrency.
Crypto market will mature with the help of institutional investors
Giancarlo went on to note that there has been a noticeable increase in the number of institutional investors that are coming into the cryptocurrency market.
He added that at the current pace, the crypto market will mature in no time and institutional investors should be thanked for that.
He cautioned that there is still a long way to go as there are some issues that have to be resolved. The spot exchanges, the lack of transparency, multiple conflicts of interest, the absence of systems and systems safeguards are all causes for concern.
Giancarlo, however, believes that with time, the market will mature and he expects that maturity to come sooner than expected.
Talking about the role of the CFTC, Giancarlo stated that the agency has intensified its effort at identifying scammers and fraudsters and taking them out of the marketplace as soon as possible.
Giancarlo also called for more innovation around blockchain-related products within the U.S as he believes that the industry has the potential to become a very huge one in the future.