Altcoin
Pomp Says Wall Street Has An Appetite For Altcoins, That’s Why It’s Important
- Anthony Pompliano says Wall Street is branching into altcoins because of their love of risk and potential high returns.
- Wall Street’s preference for high-risk investments is evident in the popularity of zero-day options, which account for more than half of all options trades.
- Despite regulatory warnings, major institutions like Franklin Templeton are moving to give Wall Street access to altcoins, signaling a shift in investment strategies.
Bang, bang, altcoins are coming to Wall Street.
This is how Anthony ‘Pomp’ Pompliano begins his latest video, revealing that Wall Street is far from ending cryptocurrency adoption with Bitcoin and Ethereum.
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Why do you think this is so?
After all, the Securities and Exchange Commission (SEC) and its chief crypto-skeptic, Gary Gensler, continue to warn about the risks of cryptocurrencies.
It turns out that this is exactly what the “degens” (Pomp’s words, not mine) on Wall Street like: risk.
One of Wall Street’s secrets is that there are just as many, if not more, degenerates on Wall Street than in other cryptocurrency markets.
Why do they love risk? Well, risk means volatility, and in turn, that means there are many possible gains to be had.
Wall Street loves risk. They are not as risk averse as you think. Fun [that] people think they’re stupid, but in reality Wall Street is simply addicted to risk. Why? Risk is volatile and volatility means that perhaps there can be returns for large institutional investors.
Pomp believes Wall Street has smelled the bacon and “realized that cryptocurrencies are risky,” but that risk can potentially make him a lot of money.
And so that’s where they want to go and allocate capital.
Major institutions eye Altcoin exposure amid a surge in options trading
Pomp explains that if major institutions decide to invest in something, they will create a mechanism to facilitate just that. So, Franklin Templeton, among others, is likely considering offering Wall Street exposure to altcoins.
The appetite for risk among these institutions can be gauged by the popularity of zero-day options, which account for more than 50% of all options trading. These essentially serve as daily bets on market movements, reflecting Wall Street’s penchant for high-risk, high-reward strategies.
And that means Wall Street will show up with size. I like to think of this as a natural progression of the market.
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So while many are hoping for Altcoins to make quick gains, the average Bitcoin HODLer won’t be selling, viewing BTC as a long-term investment – and guess what: Wall Street doesn’t care anyway.
But this doesn’t matter to Wall Street because they don’t care about the long-term sustainability of these assets. They just want to be able to buy things, make money quickly and get out of it.
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