Crypto represents a sound investment for institutional investors in the long term, consultancy firm Cambridge Associates has advised, according to a Bloomberg report on Feb. 18.
Boston-based Cambridge Associates, which specializes in pension and endowment consultancy, reportedly works with institutions that collectively advise over $300 billion, with $30 million under management. In a research note published today, analysts at the firm reportedly wrote that:
“Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term. Though these investments entail a high degree of risk, some may very well upend the digital world.’’
Assessing the 2018 cryptocurrency market slump, the analysts reportedly argued that the crypto investment landscape as a whole nonetheless robustly demonstrates “an industry that is developing, not faltering.’’
The document went on to advise prospective investors to thoroughly research and educate themselves about the space, and to explore diverse investment routes — from working with illiquid venture capital funds to direct spot market trading on crypto exchanges.
As reported, digital asset management fund Grayscale Investments’ latest crypto investment report revealed that the share of its capital inflow from institutional investors is on the rise.
Anticipating this trend will continue, ex-Goldman Sachs partner and founder of crypto merchant bank Galaxy Digital Mike Novogratz has recently forecast that the crypto industry as a whole is poised to undergo a structural shift, from “a people’s revolution to [an] institution[-led] one.
As reported, the $30 billion endowment of prestigious Ivy League American university Yale — helmed by stalwart investor David F. Swensen — was one of those to help raise $400 million for a major new crypto-focused fund in October.