Winklevoss Twins See Fault in Wall Street’s Lack of Interest as Being the Reason for Prolonged Crypto Growth
Since the recent U.S Securities and Exchange Commission (SEC)’s disapproval for an exchange-traded fund (ETF), one that the Winklevoss brothers have proposed, the two still remain hopeful that it will one day be accepted.
While the cryptocurrency market has seen a plummeting effect for most of 2018 so far, many investors were hopeful when the news surrounding a crypto ETF would come to form. The demand is said to be essential, as it marks new institutional money coming in, which can help to stabilize market capitalization and support trading volumes.
Now that the SEC pushed their decision as to whether or not they will confirm an ETF to September 2018, the Winklevoss brothers seem to blame the lack of involvement from Wall Street as being one of the main reasons why the crypto market remains underdeveloped. In particular, the CEO of Gemini, Tyler Winklevoss said the following:
“Wall Street is taking cryptocurrencies seriously, however, the vast majority of Wall Street firms are still not participating in the cryptocurrency market, which remains primarily a retail driven market.”
For institutional investors, the goal is to make a significant return on investment (ROI), however, this is clearly not the case for cryptocurrencies at the moment. This forces them to remain patient, while awaiting approvals from the SEC and regulators on how the digital assets would be classified and other related specs.
According to Bloomberg’s reporting, this is the second time that the SEC rejected the concept of a crypto ETF, which allegedly was a combined effort of two investment platforms, Cboe Global Markets and Gemini.
As for what direction Gemini will be taking moving forward, Tyler Winklevoss explicitly shared during an interview that the firm will be emphasizing more on bringing together cryptocurrencies and retail businesses by making more of the former available via its platform.
In assessing the firm’s overall growth, Winklevoss further added that his firm has managed to double its employees worldwide in as little as six months and will continue to target that goal. As per Bloomberg, Gemini welcomed NYSE’s former chief information officer, Robert Cornish as their chief technology officer.
Clearly, introducing institutional investors can be considered a foundation for the crypto market to further develop, as this would include a lot money that would otherwise be sitting on the sidelines. Despite having been rejected twice, it appears that the Winklevoss brothers will be taking other measures to help increase user adoption. What are your thoughts on this matter?