The Boston-based consultancy, Cambridge Associates, who manage more than $300 billion worth of clients’ assets, have said that investing in crypto assets is worth delving into.
A spokesperson was quoted in Bloomberg, saying: “Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term. Though these investments entail a high degree of risk, some may very well upend the digital world”.
Cambridge recommends “a considerable amount of time learning about the space,” including surveying the different ways of investing, from illiquid venture capital funds to buying tokens on an exchange”.
Despite the year-long bear market, Cambridge believes we are still in the developing stages of the industry. Many large institutions have avoided the $120 billion crypto industry because of its unregulated nature and the illusion that it is only used for illicit trade.
They say: “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.”
Institutional Investment Is Increasing
Institutional investments contribute not only to to a bullish sentiment among crypto enthusiasts, but also that a wave of institutional investors would bring greater credibility to the market.
Last week Grayscale released a report detailing the steady influx of institutional money to the crypto space in the past year. Grayscale even declared cryptocurrency as a new asset class, and suggested they could play a ‘diversifying role’ within the average investor’s portfolio.
“Despite a slowdown in investment across products in the fourth quarter, we continue to see evidence that digital assets are here to stay as a new asset class. Moreover, we believe in a future where multiple digital assets survive, thrive, and complement one another in the digital economy”.
The outlook is positive with institutional investment increasing despite the bear market.