CNBC Fast Money recently tweeted an interview on the cryptocurrency market and its comeback with Bart Smith, the Digital Asset Leader of the trading conglomerate group - Susquehanna International. During the interview, Smith shared in detail, his views on various catalysts leading to the comeback of retail in crypto.
On being asked if retail will come back to crypto, the crypto king explained it through a recent case of Andreessen Horowitz launching crypto-fund worth $300 million. He believes that since Horowitz is a venture capitalist and Fintech, it is not a tremendous departure from where they were or what they have done.
Smith further states:
“If it was a big asset manager or like a brand name hedge fund that probably would have more catalyst in the space and when you talk to those folks [referring to venture capitalists], you don’t really get that first mover sense of urgency.”
He also spoke about SEC’s recent statement where Ether had been announced a non-security. Smith said:
“Two weeks ago when SEC talked about Ether not being a security and in kind of stating why it left out… …well a lot of these tokens don’t meet those criteria so are they going to be securities and if so are they going to need to be on broker-dealers? And that’s an interesting part of the market and frankly where you have seen the demand is from retail people in the US - Coinbase, Gemini, Circle - all those people are servicing retail investors.”
Crypto is a global asset, more than 50% of the volume traded is in Asia. The question is ‘if the Asian community is more of a catalyst than that of the US’. On this remark, Smith cited an example of the IRA market, leading institutional by borrowing tools from ETF and utilizing them to build portfolios.
IRA gathered assets and began doing institutional size trades, which ended up becoming a case study for larger institutions. For instance, Pension and endowment companies started using ETFs; which stands as an analogy to the current scenario in the crypto space. He explained:
“I think in this space you could see the same thing. Large pools of retail non-institutional assets but family offices kind of act like small institutions and I think that might be a proving ground where you see once again kind of the lower end of institutional leading.”
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