The investor who accurately called the bottom of the bear market late last year says that large institutions will ultimately arrive at crypto markets sooner than we think.
While a bear market and anti-crypto policies have created skepticism that traditional finance firms will ever participate in crypto, Placeholder partner Chris Burniske says the regulatory clarity that institutions want is the inevitable outcome of the current climate.
“Giving up hope that the institutions will come because of the ongoing regulatory crackdown in the US is mistaken momentum thinking — the exact opposite will happen…
Institutions need the type of clarity the USA is going to get out of the ongoing judicial and legislative processes in motion, not to mention the rest of the world is clearly already on the path to reg clarity.”
The arrival of institutions won’t mean the end of classic decentralized finance (DeFi), Burniske says. However, the former ARK Invest analyst says “regulated systems” could become the bigger ecosystem as institutions look for platforms better calibrated to their needs.
“DeFi will never die, nor will unregulated, non-KYC/AML (know your customer/anti-money laundering) crypto.
But there is a high likelihood that the ‘regulated systems,’ built on the more transparent and capital efficient architectures of blockchains, will grow larger.
I’m sure there will be people who moan that a ‘regulated IFS (Internet Financial System)’ is selling out crypto’s core ideals — I understand that, but I also think that revolutions temper with time, and as long as the IFS widens access to efficient, fair, and performant financial services we’ve done well.”
Burniske says that his thesis backed Placeholder’s investment in Infinity Exchange, a decentralized finance protocol that provides institutional grade capital efficiency for traders, yield farmers and global fixed income investors.
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