- MLIV survey says investors attracted to crypto following regulatory crackdowns.
- 60% of survey participants believe crackdowns are a positive indication.
- Most investors now see cryptocurrency with a modicum of optimism.
Respondents to an MLIV Pulse survey said they were more willing to participate in the crypto market after regulatory agencies such as the US Securities and Exchange Commission (SEC) began cracking down on fraudulent enterprises in the sector.
Notably, of the 564 people who participated in the latest MLIV Pulse survey, over 60% said they saw the current flurry of legal action in crypto as a positive indication for the asset class, whose trademark volatility has all but evaporated in recent months.
For example, the SEC is looking into Yuga Labs, the developers of the Bored Ape collection of NFTs, while US regulators are looking into the defunct cryptocurrency businesses Three Arrows Capital and Celsius Network.
On a similar note, Chris Gaffney, president of world markets at TIAA Bank, had recently said:
I’m in the ‘yes’ camp. As a professional investor, you need a regulated investment opportunity and it opens the doors for more professional investors to get involved in crypto if it’s more regulated.
When it comes to Bitcoin, in contrast to their stance in July, most investors now see cryptocurrency with a modicum of optimism. Almost half of those surveyed believe Bitcoin’s price would stay between $17,600 and $25,000 until the end of the year, a change in sentiment from the summer when many predicted it would fall to $10,000 before rising to $30,000.
Despite the industry’s relative obscurity among traders, crypto remains a polarizing issue, as seen by the survey respondents’ wide range of viewpoints. When asked to characterize the emerging industry using a single word, “Ponzi” and “future” were tied for first place.
Victoria Greene of G Squared Private Wealth says:
There are so many unknowns, including regulation and platforms, as well as what the hell it [cryptocurrency] actually is and what it will be used for.
While concluding the statement, Greene added that if one is a true believer, one can say crypto is the future. However, people with more traditional views may call crypto a Ponzi.
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