Despite The Challenges, Institutional Investors Are Watching Bitcoin And Other Cryptos Closely

Anthony Pompliano, Morgan Creek Digital’s founder in a tweet on March 4 said institutional investors are now paying attention to Bitcoin and generally cryptocurrencies. The founder also made reference to a post which outlined that two U.S. pension funds in Virginia had invested in the company’s $40 million venture-capital funds.

Institutional Investors to Foster Massive Adoption of Crypto

Institutional investors are believed to be the key that will foster the massive adoption of cryptocurrencies. These are companies that control billions of dollars in assets and are reputably known around the world. However, their reluctance to enter the crypto market is usually attributed to the volatile nature of these assets and the manner in which they are used to facilitate crime.
For instance, Giorgio Carlino, managing director and CIO of the global multiasset team while speaking to a media outlet said:

Too many risks involved in investing in cryptocurrencies to date, with the primary risk being valuation. As an institutional investor, you should not, you could not actually, explain a position in bitcoin … or any other crypto in your portfolio as an asset allocation.

Things are Changing for the Better Despite Investors’ Reluctance

Despite the level of reluctance in the past, things are changing for the better. As Anthony Pompliano stated, the institutional investor community are now paying attention to Bitcoin and cryptocurrency.

In line with Pomplaino’s comment, BTCNN on February 14 informed of two U.S. pension funds in Virginia who invested a larger part to the $40 million that was raised by Morgan Creek for its Blockchain Opportunities Fund. The pension funds are $4.2 billion Fairfax County Employees’ Retirement System and $1.5 billion Fairfax County Police Officers Retirement System.
The company, on the other hand, had pointed out that their fundraising target was $25 million and as such, what was raised exceeded their expectation. Asides from the Pension funds, investors also came from a hospital system, university endowment, insurance company, and a private foundation.

JPMorgan Becomes First U.S. Bank to Launch a Cryptocurrency

In the same vein, JPMorgan, a U.S. bank on February 14 launched its own cryptocurrency. It is worthy to note that the Bank’s CEO, Jamie Domin in 2015 had stated that people are wasting their time with virtual currencies such as Bitcoin. His opinion could’ve changed given that the bank wants to use JPM Coin, its cryptocurrency to enable institutional customers to make transfers.
Fidelity Investments, a financial services company also intends to launch its cryptocurrency custody platform this month. The company on January 31 informed that the platform is in its final testing stage. The launch of this platform is expected to draw the institutional investors community into the crypto space.

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