Wall Street’s dismissal of bitcoin becoming harder

Fear of missing out, or “fomo”, is often said to be one of the most powerful psychological forces in finance. As retail investor interest in bitcoin and other cryptocurrencies has surged, investment professionals have often cast confused and disapproving looks towards what many believe is a wild and speculative bubble.

In a year when the price of bitcoin has risen almost fivefold to beyond $5,500, there are signs of tentative interest from mainstream finance. The question is whether cryptocurrencies are gradually being accepted as a legitimate asset class, a cynical attempt to cash in on a bubble or a mix of both.

Ami Ben David, co-founder of venture capital fund Spice, argues that there has been a noticeable shift in the attitude of traditional finance towards cryptocurrencies in the past 12 months, driven by “fomo”.

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