Regulatory uncertainty keeps traditional asset managers out of the crypto space, survey takers say


More than half the participants in a recent The Block Research survey say that regulatory uncertainty is keeping traditional asset managers from entering the crypto and digital asset space.

The Block completed 38 interviews with firms in our sample set, drawing on professionals who predominantly work in the digital asset sector. The list of participants includes market makers, exchanges, custody providers, and traders.

As noted by The Block’s Steven Zheng: “More than 53% of respondents believe regulatory uncertainty prevents traditional asset managers from entering the sector, with many citing how the legal status of many digital assets remains uncertain.”

“The main blocker for asset managers is getting a mandate…funds like Blackrock don’t have the discretion to expand their mandate to invest in bitcoin. These funds have a specific mandate and can’t invest in just anything,” Max Boonen, director and co-founder of B2C2, told The Block.

Other cited factors include the development of infrastructure and the overall size of the market, with 47% and 32% of participants pointing to those facets, respectively. 

“As to what the industry can do to improve its chances of bringing in institutional participants, many cited regulatory clarity from enforcement agencies like the CFTC and the launch of regulated digital asset products like a bitcoin ETF,” The Block Research noted.

Read the full Institutional Market Infrastructure Interview Series survey results here.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.



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