Cambridge Associates, an advisory form for pension funds says institutional investors should put resources into Bitcoin and other cryptocurrencies. Specialists at the firm think that the new assets class has the potential to change the perspective of money in the digital world. Therefore, early investors have the chance to make the first move and take advantage of taking a seat in the first row in cryptocurrencies.
Bitcoin Development and Adoption is Growing
As per Bloomberg, the firm issued a note to its customers on Monday (February 18, 20190 asking them to consider investing in Bitcoin. Specialists at Cambridge Associates state crypto-centered speculations could conceivably receive immense benefits for institutional investors.
The organization says the dangers related to Bitcoin and other virtual monetary forms shouldn’t deter enormous cash players from setting up value in the market. All through 2018, cryptocurrency suffered a long bear market that made prices plunge by more than 80%.
Remarking on the issue in the note to customers, Cambridge Associates specialists stated:
“The dramatic declines that swept across the crypto space raised questions about the future of these assets and the blockchain technology that underpins them. Yet, in looking across the investment landscape, we see an industry that is developing, not faltering.”
On the other side, while digital money ventures can possibly deliver enormous returns, the firm says institutional investors shouldn’t bounce in head first without getting all the necessary information first. As per the specialists, endowments, pension funds, family offices, and other huge cash players ought to get satisfactory data about the business before settling on which ventures to invest.
While still in its early phases, the cryptocurrency economy, and technology as growing and getting more adoption, generating distinctive investment opportunities. From spot exchanging on trading platforms to future contracts and even illiquid assets, there are various choices for institutional investors.
Big Institutional Investors are Already Invested in Cryptocurrency
Some big money players have already invested in cryptocurrency. In February 2019, Morgan Creek Digital reported that it had secured investments from two public pension funds situated in Fairfax County, Virginia. These two pension funds are the first public pension funds that intend to invest money into cryptocurrencies.
Fundstrat co-founder, Tom Lee states that 2019 could see a lot of development in the crypto world. However, despite that he states that will not be a big price, meanwhile, the new technology creates strong foundations.
The Crypto Market Needs Legitimacy
In any case, if the rush of institutional speculators that keeps on being the fuss for some cryptocurrency lovers is consistently going to be a reality one day, many analysts say that the market needs to be regulated. Along these lines, issues like price manipulation, ICO scams, and other fraud schemes should be eliminated or possibly limited.
Reliable custody services and price manipulation continues to remain a point of failure for the crypto market. In January, Fidelity Investments declared that it would launch its cryptocurrency custodial service in March 2019.
In an interview with Forbes, Alex Sunnarborg, a founding partner at Tetras Capital, a New York City-based cryptocurrency hedge fund, says the launch of companies like Fidelity and Bakkt will be crucial to the status of the crypto economy. The passage of such legitimate standard players could present far-reaching developments in the legitimacy of cryptocurrencies.