Can Wall Street Ruin Bitcoin? Strike CEO's Answer

▲ Bitcoin (BTC), Wall Street/ChatGPT generated image ©

Amid growing concerns that Wall Street might take over the Bitcoin market, Jack Mallers, CEO of Strike, dismissed the idea, stating, “If Wall Street could ruin Bitcoin, it wouldn’t have been an asset destined to succeed in the first place.”

According to the cryptocurrency media outlet Bitcoinist on May 10 (local time), the US investment bank Morgan Stanley recently launched a pilot cryptocurrency trading service through its ETrade platform. The trading fee is around 50 basis points (0.5%), which is lower than major US retail investor platforms like Coinbase, Robinhood, and Charles Schwab. The market interprets this as a sign that traditional finance is making a full-fledged entry into the digital asset market.

However, Mallers emphasized that Wall Street’s involvement would not undermine Bitcoin’s core philosophy. Appearing on the YouTube podcast ‘What Bitcoin Did,’ he said, “Bitcoin was designed as money for everyone, not just for people who share specific political leanings or values.” He added, “It’s logically inconsistent to advocate for an open network while excluding Wall Street.”

He explained that the inflow of institutional funds is also a natural phenomenon as Bitcoin competes with global capital. Mallers predicted that as Bitcoin spreads in the future, the relative value of existing assets like real estate, art, and government bonds might decline. Indeed, Bitcoin spot ETFs launched in the US in January 2024 have recorded nearly $60 billion in net inflows across 11 products to date.

However, within the Bitcoin community, concerns are also emerging that an institution-centric ownership structure could pose another risk. Nic Carter, a venture capitalist and known Bitcoin advocate, pointed out in February that “large institutions might become dissatisfied with current Bitcoin developers if solutions to problems like quantum computing threats are delayed.”

Carter argued, “Ultimately, institutions might replace existing developers and push for new development teams.” Bitcoinist analyzed that such debates are new tensions arising as Bitcoin increasingly moves into the mainstream financial center.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*