Fund managers with zero cryptocurrency risk are left behind-Bloomberg Strategist


The professional risks surrounding cryptocurrency are shifting to those fund managers who have not been exposed to digital assets, rather than those who have already invested, highlighting the huge shift in institutional acceptance of Bitcoin.Bitcoin) And decentralized finance, according to Bloomberg Senior Commodity Strategist Mike McGlong.

Bloomberg Cryptocurrency Outlook November Edition describe 2021 is just another foundation year for the cryptocurrency market, further emphasizing the long-term value proposition of digital assets. In this environment, fund managers “may lag behind and underperform their counterparts who own crypto assets,” McGonlong wrote, adding:

“Our chart depicts the performance of the Bloomberg Galaxy Encryption and DeFi Index in 2021 compared to the S&P 500 Index by more than 200%.”

Although encrypted Exhibits Much higher volatility than traditional investments, the sell-off of assets such as Bitcoin and Ethereum (Ethereum) “It seems to be attracting responsive buyers, most of whom are facing the possibility of falling behind by avoiding crypto distribution.”

McGlone further explained that “Managers are expected to catch the big trends before the public.” If they rely on traditional portfolio strategies, such as allocating 60% to stocks and 40% to bonds, this feat will become more difficult. .Many wealth management institutions warn The traditional 60-40 investment portfolio is no longer sufficient in today’s market.

related: JPMorgan Chase stated that the “fair price” of BTC is $35,000…but it still expects cryptocurrencies to “outperform the market.”

As Cointelegraph reported in early October, Magron predicted correctly In the early stage of Bitcoin’s fourth quarter breakthrough, it is believed that the resistance level of $50,000 may have turned into a support level. The analyst stated that there will be $100,000 worth of Bitcoin in 2021-this view has been reiterated in the latest report.

According to reports, at the time of writing, the flagship cryptocurrency is worth $62,080. Cointelegraph Markets Pro. Bitcoin reached a peak of over $67,000 in October and then revised downwards.

The Bitcoin price remains firmly above $60,000. Source: Cointelegraph Markets Pro

Grayscale’s Michael Sonnenshein, Amber Group’s Jeffrey Wang and Tyr Capital’s Edouard Hindi stated that investment managers and financial advisors are expected to play a greater role in the cryptocurrency market. In the first quarter, Cointelegraph interviewed three executives Measure the institution’s interest in crypto investment. In their view, the “professional risk” of investing in crypto has been greatly reduced. According to Edouard Hindi, the final domino may be the fiduciary standard:

“Now that custody and regulatory barriers are slowly falling, but what may still hinder the wider adoption of encryption by financial advisors is the perception that the’fiduciary standard’ is still a challenge for publicly advocating the inclusion of asset classes in client portfolios.”