Institutional investors should consider the crypto derivative market, says investment advisory firm Cambridge Associates. Specializing in pension and endowments funds, the Boston-based consultancy advises its clients to look at these assets in a long-term.
For those who are willing to invest, Cambridge recommends a good learning time. It also guides the analysis of the different possibilities at the table, such as venture capital funds and the direct purchase of cryptocurrencies in exchanges.
There are a few examples of this type of investor moving to digital assets. Two pension funds in Fairfax County, Va., Invested in a venture capital fund focused on the blockchain. Last year, Yale University invested in a fund focused on early-stage blockchain projects.
Institutions such as KPMG had already pointed to an institutional market movement toward cryptoassets. This movement reflects the advance of regulation in this market in some way. The consensus is that the first ones to invest will have the best chances of enjoying a possible bull market.
Besides that, traditional financial market companies are investing in blockchain product creation. Therefore, Fidelity, for example, develops a cryptoassets trading and custody service for institutional investors. Other traditional companies, such as the Swiss bank Vontobel, also develop services aimed at the area. These movements concretize the perception that the crypto experts had throughout 2018.