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Monday, December 23, 2024

A well-known businessman explained the reluctance of investors to buy cryptocurrency

Clearer regulation contributes to increased demand for digital assets among large investors, according to Kevin O’Leary.

Venture capitalist and businessman Kevin O’Leary, in an interview with Blockworks, named the main reason why institutional investors are in no hurry to buy cryptocurrency.

According to O’Leary, large investors are not confident that digital assets will meet regulatory requirements.

The infrastructure bill was also a “lost opportunity,” according to the entrepreneur, because modifications to exempt producers of hardware wallets, cryptocurrency transaction validators, node operators, and other crypto market players from tax control were not passed.

According to O’Leary, clearer regulation is helping to increase demand for cryptocurrency among institutions.

The businessman believes that the US Securities and Exchange Commission (SEC) will not approve the release of Bitcoin ETF in 2022.

According to O’Leary, the regulator will be slow to review applications for the issue of a cryptocurrency-based exchange-traded fund.

The SEC is currently considering applications from ARK Invest , One River , VanEck and Fidelity .

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