A bear market could signal change in the way institutional investors view crypto investments, and that’s not necessarily a bad thing for an asset class sometimes mistaken for consisting solely of volatile currencies.
“A misconception about the crypto space is that there is a single thing – cryptocurrency – to allocate to, but that couldn’t be farther from the truth,” says Scott Army, Managing Director, CIO at Galaxy Digital. “There’s massive segmentation and specialization. Often, the early days of a multi-decade technology map well to venture allocations, and that’s the easiest way for institutions to enter the space.”
In other words, the real potential in crypto is on a longer time horizon than many investors might realize based on the history of the asset class. In 2018, the ICO [initial coin offering] bubble burst because investors fundamentally lost confidence in crypto. That is not the case today, and institutional investors eyeing the space with headline-generated trepidation might reconsider what could be rare opportunities.
“The longer the time horizon, the easier it is to focus on building great technology and useful products,” says Ben Forman, Founder and Managing Partner, ParaFi Capital, a firm focused on investing across the crypto ecosystem. “We’re long term focused, and investors are taking a multi-decade view around crypto. However, in the near term crypto has developed into a volatile, macro-driven asset class.”
Continue reading: https://www.institutionalinvestor.com/article/b1zs3n1842sw1f/Crypto-Growth-Opportunities-Emerge-in-a-Bear-Market
“A misconception about the crypto space is that there is a single thing – cryptocurrency – to allocate to, but that couldn’t be farther from the truth,” says Scott Army, Managing Director, CIO at Galaxy Digital. “There’s massive segmentation and specialization. Often, the early days of a multi-decade technology map well to venture allocations, and that’s the easiest way for institutions to enter the space.”
In other words, the real potential in crypto is on a longer time horizon than many investors might realize based on the history of the asset class. In 2018, the ICO [initial coin offering] bubble burst because investors fundamentally lost confidence in crypto. That is not the case today, and institutional investors eyeing the space with headline-generated trepidation might reconsider what could be rare opportunities.
“The longer the time horizon, the easier it is to focus on building great technology and useful products,” says Ben Forman, Founder and Managing Partner, ParaFi Capital, a firm focused on investing across the crypto ecosystem. “We’re long term focused, and investors are taking a multi-decade view around crypto. However, in the near term crypto has developed into a volatile, macro-driven asset class.”
Continue reading: https://www.institutionalinvestor.com/article/b1zs3n1842sw1f/Crypto-Growth-Opportunities-Emerge-in-a-Bear-Market
