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Pomp Says Wall Street Has Appetite for Altcoins, Here Is Why It Matters
- Anthony Pompliano states Wall Street is expanding into altcoins due to their love for 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 over half of all options trading.
- Despite regulatory warnings, major institutions like Franklin Templeton are moving to give Wall Street access to altcoins, signalling a shift in investment strategies.
Bang, bang, altcoins are coming to Wall Street.
Anthony Pompliano That’s how Anthony ‘Pomp’ Pompliano begins his latest video, revealing that Wall Street is far from ending its crypto adoption with Bitcoin and Ethereum.
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Why does he believe that’s the case?
After all, the Securities and Exchange Commission (SEC) and its crypto-sceptic boss, Gary Gensler, keep warning about the risk of crypto.
Turns out that is exactly what the ‘degens’ (Pomp’s words not mine) over at Wall Street like: risk.
One secret of Wall Street is, there’s just as many, if not more degens on Wall Street than there are other crypto markets.
Anthony Pompliano 
Why do they like risk? Well, risk means volatility, and in turn, that means a lot of possible gains can be made.
Wall Street loves risk. They’re not as risk averse as you think. Funny [that] people think they’re dumb, but actually Wall Street is just addicted to risk. Why? Risk has volatility and volatility means that maybe there can be returns there for the big institutional investors.
Anthony Pompliano Pomp believes that Wall Street has smelled the bacon and “woken up to the fact that crypto is risky”, but that risk can make them a lot of money, potentially.
And so that’s where they want to go and allocate capital.
Anthony Pompliano Major Institutions Eye Altcoin Exposure Amid Surging Options Trading
Pomp explains that if major institutions decide to invest in something, they’ll create a mechanism to facilitate exactly that. So, Franklin Templeton, among others, is likely considering offering Wall Street exposure to altcoins.
The interest in risk among these institutions can be measured 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 that Wall Street is going to show up with size. I like to think of this as a natural progression of the market.
Anthony Pompliano Related: Fidelity International Introduces Instant Share Tokenisation on JPMorgan’s Onyx Blockchain
So, while many hope Altcoins will make rapid gains, the average Bitcoin HODLer will not sell, seeing BTC as a long-term investment – and guess what: Wall Street doesn’t care either way.
But that doesn’t matter to Wall Street because they don’t care about the long-term viability of these assets. They simply want to be able to buy things, make money quickly and get out of them.
Anthony Pompliano 
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
