Crypto for Advisors

A June 2020 Fidelity Digital survey reported that more than one-third of European and US institutional investors own digital assets. But traditional financial giants don’t seem to have penetrated the crypto space, so what’s happening? Does the slow entry of digital asset institutions mean that advisors have to wait longer to access this asset class?
Many of the largest cryptocurrency institutional holders come from outside the traditional financial world. Two companies, MicroStrategy and Tesla, have significant interests in cryptocurrencies. As of June 21, MicroStrategy had over $ 105,085 of Bitcoin, which was $ 2.7 billion at the time, but Tesla’s Bitcoin share is reported to have exceeded $ 1.3 billion in the second quarter. Former hedge fund manager Michael Novogratz, Galaxy Digital Holdings owns over $ 500 million in Bitcoin, and cryptocurrency broker Voyager Digital owns nearly $ 400 million in Bitcoin.
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Another major non-traditional buyer is Square, a platform for merchant payments led by Jack Dorsey. Marathon Digital Holdings, Bitcoin Minor. And cryptocurrency exchange coinbase. But traditional institutions may not be far from jumping into the field of digital assets, says John Sarson, founder of crypto asset manager Sarson Funds. They are fascinated by their promises as hedging and diversification strategies, their potential for use in market neutral strategies, and cryptocurrencies as alternative investment strategies.
“I think there will be an institutional surge in the cryptocurrency space,” Sirson said. “When they start walking, they don’t stop. I’ve never heard of an institution that bought cryptocurrencies on the upside because nothing happened that they wanted to sell.” “

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