Kevin O'Leary, a well-known investor and TV personality, has expressed his doubts about Wall Street's willingness to invest in Bitcoin, despite recent efforts by asset managers to establish Bitcoin spot ETFs. O'Leary's skepticism is fueled by the ongoing scrutiny of the cryptocurrency sector by regulatory bodies, led by SEC Chair Gary Gensler. He believes that this scrutiny is a major obstacle for institutional investors, who are hesitant to invest in a market that is under legal attack.

O'Leary's concerns are not unfounded. The SEC has recently launched lawsuits against major cryptocurrency exchanges, including Coinbase and Binance, alleging that many traded tokens are unregulated securities. This legal action has limited the options for firms like BlackRock, which is considering launching a Bitcoin ETF. O'Leary questions the viability of such a move, given the regulatory uncertainty surrounding the market.

The decline of Binance, one of the largest cryptocurrency exchanges, and the legal troubles of its founder, Changpeng Zhao, have also contributed to O'Leary's skepticism. He wonders if institutional investors will be willing to get involved in a market that is facing such intense regulatory pressure. The ongoing trial of Sam Bankman-Fried, the former CEO of FTX, which collapsed last year, has also raised questions about the lack of regulatory oversight in the industry.

O'Leary's comments suggest that the era of unregulated crypto trading may be coming to an end. He believes that the industry needs regulatory approval to move forward, and that without it, institutional investors will remain on the sidelines. While he is skeptical about the current state of the market, he does see a future for cryptocurrency, particularly if more transparent exchanges emerge in other parts of the world.

O'Leary's views are not surprising, given his personal experience with cryptocurrency. He reportedly lost $15 million in the collapse of FTX, which has made him more cautious about the market. However, his comments highlight the need for regulatory clarity and oversight in the industry, which is essential for institutional investors to feel comfortable investing in cryptocurrency.

In conclusion, Kevin O'Leary's skepticism about Wall Street's investment in Bitcoin is a sign of the times. The regulatory scrutiny of the cryptocurrency sector is a major obstacle for institutional investors, and the industry needs to adapt to this new reality. While the future of cryptocurrency is uncertain, one thing is clear - the days of unregulated crypto trading are numbered.