The Block: “Regulatory uncertainty keeps you from investing in cryptocurrencies”

According to a new study by The Block, investors and managers of traditional assets do not investinto the cryptocurrency industry due to regulatory uncertainty.

Analysts interviewed representatives of 38 firms,working primarily in the digital asset sector. The survey involved market makers, exchanges, custodial service providers and traders. More than half of respondents called regulatory uncertainty one of the main reasons for refusing to invest in cryptocurrencies.

“More than 53% of respondents said that regulatoryuncertainty does not allow traditional asset managers to enter the sector. Many cite the fact that the legal status of many digital assets remains uncertain, ”said The Block analyst Steven Zheng.

According to the director and co-founder of B2C2Max Boonen, a large traditional fund, is not so easy to change their policies and start investing in bitcoin. They have a clearly defined policy with rules that determine the assets available for investment.

Respondents also noted that to entertraditional companies in the cryptocurrency sector are still underdeveloped infrastructure and the overall market capitalization is too small. 47% and 32% of respondents named these reasons, respectively.

“Regulators like the Commission onUS Commodity Futures Trading (CFTC) clarified their attitude. We also need the launch of regulated products tied to digital assets, such as Bitcoin traded exchange traded funds (ETFs), ”the researchers concluded.

In early May, PwC consulting company announced that the volume of assets under management (AUM) of cryptocurrency hedge funds doubled in 2019 and reached $ 2 billion.

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