Former head of risk valuation at investment bank Credit Suisse, CK Cheng thinks the clarity over the regulations of crypto within the United States could result in a determined bull run in the crypto market. While stating this, Cheng also anticipated the instance to take place as early as next year.
According to Cheng, the United States authorities are making efforts towards creating regulatory norms and this is expected to remove friction for traditional finance to enter the crypto space.
CK Cheng is co-founder of a crypto hedge fund named ZX Squared Capital. The firm intends to serve family offices as well as individual clients with high-net-worth. Earlier, he was working with Credit Suisse as an executive at the valuation risk department.
While going into inner details, the hedge fund manager talked about the changes happening recently in the stance of traditional institutions towards the crypto assets. This even includes entry of some of these entities within crypto space.
For instance, BlackRock came into partnership with leading US crypto exchange Coinbase last month itself. The firm is a month the world’s largest asset management firms which anticipated to offer access to bitcoin (BTC) and other several crypto to its institutional clients through Coinbase Prime.
Meanwhile, several other institutions belonging to the finance sectors also came together intending to create their crypto exchange that will be focusing on serving both institutional and retail investors.
Cheng said involvement of traditional finance institutions in the crypto space has increased tremendously. At the same time there has been a significant increase in interest towards the crypto as well. Although he emphasized apart from current participants, many are still in the queue waiting to step in following the regulations.
He opined that the regulations would act as an act to push a lot more traditional financial institutions and investors within the space. He added that it is going to be the start of the next potential bull market.
Source: https://www.thecoinrepublic.com/2022/09/21/hedge-fund-manager-cited-crypto-regulation-to-create-another-bull-run/