Jaime Baeza said that the fast-paced environment and regulatory uncertainty are some of the challenges institutions face in Web3.
With more institutions joining the Web3 space, regulation has been identified as one of the trickier challenges that can either smother creativity or become a potential catalyst to broader adoption.
In an interview with Cointelegraph, Jaime Baeza, the CEO of crypto hedge fund ANB Investments, shared the challenges in managing funds in the crypto space, opportunities that come amid regulatory uncertainty, and his beliefs on what could lead to broader adoption of Web3 technologies.
According to Baeza, the fast-paced environment and regulatory uncertainty are major challenges in the current Web3 space. The executive pointed out that the space is witnessing different approaches in various jurisdictions in terms of developing regulations and highlighted the dilemma of regulators in different areas of the world. He said:
However, despite the uncertainties in regulation, the hedge fund CEO believes that there are still opportunities present in terms of experimentation and failure. He explained that:
Additionally, the executive argued that the speedy pace of the industry also has some advantages as well. “A fast-changing environment means a constant stream of new products, which can also be new tools with which to manage funds,” he said.
Related: Wealth managers and VCs are helping drive institutional crypto adoption — Wave Financial execs
When asked about the topic of getting more institutions into the crypto and Web3 space, Baeza said that there are already many institutions diving in as more investors are looking into generating returns. Following this, he said that there are other factors that can boost adoption. He explained:
Lastly, the executive shared what he thinks would be next in the digital asset space. According to Baeza, there will be more options for market developments in the space as it’s already growing but still has lots of room for growth.