U.S. major investment fund advises to buy crypto
One of the major U.S. investment funds, Cambridge Associates, has publicly encouraged investors to add cryptocurrencies to their portfolio. According to the firm, even despite the 2018 bear market, crypto industry “is developing, not faltering.”
In terms of investment approach, Boston-based investment and consulting company advises focussing on diverse routes. They recommend going with several options, from illiquid venture capital funds to simply buying tokens on an exchange. According to Cambridge Associates, all investors who are looking for a long-term diversified strategy, should start from looking into cryptocurrency first.
Experts say that institutional investors will be mostly putting money in structured, regulated crypto products, as well as vehicles that can pass the investment committee risk review process.
According to Anthony Pompliano, co-founder of Morgan Creek Digital, institutions aren’t just “coming” – they are already here. Morgan Creek Digital, cryptocurrency arm of Morgan Creek Capital Management, has launched strictly with the focus on cryptocurrencies, surpassing the goal of $25 million to be raised, ending up with $40 million.
Other major providers, like Grayscale Investment, offer a traditional investment vehicle with shares titled in the investors’ name, providing a familiar structure for financial and tax advisors. According to Mike Novogratz, CEO at Galaxy Digital, already in the next 6-12 months we should anticipate more and more institutional investors joining the playing field.