Walt Lukken, president and CEO of the American Futures Industry Association, said that the traditional financial industry has woken up and began to accept the fact that cryptocurrencies will jump into the new mainstream. However, such changes have little to do with the actual utility of cryptocurrencies, but rather their reluctance to lose out to rivals in this emerging market competition.
Hedge funds and other traditional investors have started trading cryptocurrencies, and many fund managers, such as mutual funds and pension funds, have recently sought other ways to tap the market.
Cryptocurrency investing is more attractive as rising inflation and rising interest rates erode stock and bond returns. Analysts, however, believe that the participation of mainstream financial firms may bring some stability to the wildly volatile cryptocurrency market.
