Mai Capital Management’s chief equity strategist and regional president, Chris Grisanti, has predicted that this year will be tough for crypto largely due to regulations. However, he expects established cryptocurrencies, such as bitcoin and ether, to “do quite well” once regulations come into focus.
Equity Strategist’s Crypto Predictions
Mai Capital Management’s Chris Grisanti shared his outlook for the cryptocurrency market in an interview with CNBC Thursday. Grisanti (CFA) is the chief equity strategist for Mai Capital Management and its regional president. Mai Capital Management offers planning and investment advice services.
Noting that crypto is “almost a victim of its own success,” Grisanti detailed:
I think it’s going to be a tougher year for crypto … There will be calls for regulation from all over the place — from China, from Europe, and here in the United States.
The equity strategist still sees some cryptocurrency as a viable option. “I do think there will be a great winnowing as well. I think the more established coins like bitcoin and ethereum will do quite well after regulations come into focus,” he described.
This was the strategy that the strategist created:
Institutional investors will be more comfortable with bitcoin being treated not as a currency, but rather like gold once regulations have been in place. This is an insurance against inflation.
Nickel Digital Asset Management, an EU-regulated digital asset hedge fund manager has conducted a survey that shows institutional investors believe there will be more regulation in the future.
Commenting on the U.S. Securities and Exchange Commission (SEC) being granted more power to regulate the crypto space, “73% of institutional investors and wealth managers believe this will have a positive impact on the price of crypto and digital assets and 32% believe it will have a very positive effect.”
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