A United States-based firm, Cambridge Associates, a pensions and endowments consultant with more than $388 billion in assets under advisement (AUM), has revealed that institutional investors should start delving into the blockchain and cryptocurrency sector.
Recently, Cambridge Associates released a research note dubbed “Cryptoassets: Venture into the Unknown,” that explained the state of blockchain sector and encouraged users to begin planning on investing and utilizing opportunities in the blockchain industry.
“…in looking across the investment landscape, we see an industry that is developing, not faltering…Although the cryptocurrency industry remains in its infancy, we think institutional investors should begin exploring it…Though these investments entail a high degree of risk, some may very well upend the digital world.”
Investing in Cryptocurrency
They highly recommend that less than 1% is invested either directly into cryptocurrencies such as Bitcoin, Ether and Ripple, into initial coin offerings (ICOs) or STOs, or else indirectly into blockchain technology and cryptoasset firms.
“The massive majority of investors have little to no cryptocurrency exposure,” they note. “We presume traditional venture capital funds to upsurge their investments in cryptocurrencies going forward, signifying investor exposure is also likely to increase.”
This move was a giant deal. Cambridge Associates is a bellwether in the advisory domain for investors, and allegedly has around $389 billion of assets under advisement and around $30 billion of AUM.
In a quite detailed statement, they revealed the latent cryptocurrency investment stratagems, stressing institutional investors can’t invest over 20% in non-qualifying investments, that is to say, investments in cryptocurrencies.
“Still, the crypto industry is budding and an allocation of over 1% of a portfolio on a look-through basis does not seem judicious, even for those contented supposing the very high risks involved,” they say.
Read the details in the article of Coinidol dot com, the world blockchain news outlet:
https://coinidol.com/blockchain-face-pensions/