Two executives at Wave Financial, an asset management firm that provides customized strategies for high-net-worth individuals and entities, reported an increase in institutional demand for crypto products during the bear market.
Mike Jones, head of business development at Wave Financial, told Cointelegraph Wednesday at the Blockchain Futurists conference in Toronto that institutional investment in cryptocurrencies may be driven by high-end wealth managers such as Morgan Stanley, Merrill Lynch and Goldman Sachs. , they are looking for ways to expose their clients to the space.Jones gives an example BlackRock partners with Coinbase On Aug. 4, the move will give users of the asset manager’s institutional investment management platform Aladdin access to crypto trading, custody, prime brokerage and reporting features.
Beyond wealth managers, Wave executives said there could be “massive growth” in venture capital, in part due to the need for innovative investment vehicles. Gerard Berile, head of investments and venture capital at Wave Financial, added that VCs provide clients with exposure to cryptocurrencies There is no need to go through a centralized exchange, and still large-scale transactions are carried out, which is a “net positive” for the entire industry.
“In terms of risk to houses, the bear market is a positive thing in a way,” Berile said. “Over the past year, year and a half, we’ve seen valuations of a lot of different companies get very high — a bit frothy, you could say. Over the last six months or so, we’ve seen valuations of companies Values have fallen to more realistic valuations, and now is a good time to start deploying capital.”
“In general, from a market perspective, it’s encouraging to think about the last cycle — a few years ago, when a lot of chatter around the ecosystem was: ‘Is this the end of crypto? Cryptocurrency? Dead?” Jones said. “From an institutional adoption perspective and an institutional needs perspective, the question now seems to revolve more around ‘is this the right time to get in?'”
“Things are much more encouraging, even though it’s clearly a painful time. It also presents opportunities, especially for people building in space.”
Data from the blockchain appears to support some of Berile and Jones’ claims.Crypto intelligence firm IntoTheBlock reported in March the number of block transactions on the Cardano blockchain grow more than 50 times In 2020, this points to “increased institutional demand.” However, U.S. regulators have yet to approve certain crypto investment vehicles, such as exchange-traded funds with direct exposure to Bitcoin (bitcoin) — many say such a listing could attract new investors to the market.