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The industry’s total market capitalization once again exceeded $ 2 trillion. Additionally, many believe more gains may be on the horizon for crypto enthusiasts.
It is no coincidence that the meteoric rise of the crypto market has matched the openness of more and more fund managers to the idea of adding cryptocurrency products to their investment plans.
Mark Yusko, CEO and CIO of Morgan Creek Capital, recently expressed a similar point of view in an interview. He nods,
“The smartest people are entering crypto as the money continues to flow. Now, many institutions are realizing that they need to embrace this migration, expose themselves to digital assets and ‘Go down from zero ‘.“
Simply put, it highlights the shift from investing in traditional asset classes to digital investments like cryptos. According to Yusko, it is now very important for institutional players to have greater than zero percent exposure to this space. Especially since more money and talent are pouring in.
“You have to embrace it (digital assets) and you have to be exposed to digital assets”
It’s not a process that has been kicked off all of a sudden, however, with the same game for a few years now. Yusko also reiterated the same, with the executive adding:
“If you look at the migration of talent in this space, it is unlike anything I have ever seen except another time in the 90s, when entering the internet, people were leaving great jobs. “
Do the statistics support this claim?
Fidelity Digital Assets recently released a survey to shed light on the growing interest in crypto around the world. According to his findings, 52% of investors have secured their exposure to cryptocurrencies this year.
Take the example of Bitcoin, for example. Over the years, it has garnered increasing attention from institutions and interest from mainstream retail investors, according to Google Trends.
Source: Medium
Institutional adoption of Bitcoin has come a long way since its inception. Yusko, for his part, has been bullish about BTC for a long time. In fact, he had said previously,
“There may come a time when ignoring Bitcoin will be seen as irresponsible. We truly believe that we will be looking back five years from now and that it will be deemed financially unwise to have no exposure to digital assets. “
However, not everyone agrees with the aforementioned argument. Some find it risky to gain exposure to these “volatile” assets. For example, a recent report from insurance giant Allianz found that,
“Exposure to cryptocurrency could have a profound impact on the risk profiles of financial institutions.”
Meanwhile, companies that offer crypto services in the form of trading or custody “will face the prospect of potential liability to third parties,” added Ed Williams of Allianz Global Corporate and Specialty.
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