Cryptocurrency may soon catch the investment industry's big fish in its net: pension and charitable funds. According to Ari Paul, chief investment officer at cryptocurrency hedge fund BlockTower Capital, institutional funds will sooner or later add digital assets to their portfolios. “I think it's inevitable if only because they won't miss the opportunity to make money, even if they don't believe in cryptocurrency as an asset class,” he said.
Ari Paul, who worked as a strategic hedge fund manager at the University of Chicago before founding his own company, BlockTower Capital, last year, explained that institutional funds are interested in investing in bitcoin and other cryptocurrencies but are hesitant to take the plunge first.
“We are in a bear market until new buyers are tempted. For example, an Ivy League school making a small investment may have an indirect impact on the institutional market. Even a small amount makes a difference. If Yale invests in digital assets, then others will do the same.”
However, before this happens, institutions will need access to trustworthy custodians, but to do this, such custodians will need to expand their range of services and have an impeccable reputation. Paul predicts that charities will make their first investments in cryptocurrency within the next three to four months. Pension and other institutional funds will follow in about six months.
Paul isn't the only one thinking so. Pantera Capital fund recommends buying bitcoin, explaining that institutions are finally ready to take risks and invest in cryptocurrency. “I’m rarely so confident in my words. Institutional money will lead to significant growth in markets,” wrote fund founder Dan Morehead.
Meanwhile, Wall Street strategy firm Fundstrat believes the price of bitcoin will reach $25,000 by the end of 2018, based on the assumption that prices will begin to rise once tax issues are resolved.
According to https://www.ccn.com
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