• 17 hours Why Chinese Rare Earth Prices Are Soaring
  • 2 days 2021 Could Be A Huge Year For Chinese Stocks
  • 3 days Shadowy Brokers Target Easy TikTok Money In New Scheme
  • 4 days Cannabis Sales Are Soaring In The United States
  • 5 days Biden Will Be A Boon For Solar Stocks
  • 6 days The Shroom Boom Is Here To Stay
  • 9 days The Gold Rally Has Finally Run Out Of Steam
  • 9 days Citibank Analyst Predicts $300k Bitcoin By End Of 2021
  • 12 days Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 12 days 14 Million People Will Lose Unemployment Benefits On December 31st
  • 14 days Why 12 Million American Millionaires Isn’t Good News
  • 15 days Big Oil Is Paying The Price For Investing In Renewables
  • 16 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 17 days Did Amazon Just Democratize Prescription Drugs?
  • 18 days The Private Space Race Just Got Very Real
  • 20 days Short Sellers Are Willing Big In This Turbulent Market
  • 21 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 22 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 23 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 24 days Black Friday Could Be Retailers’ Only Hope
$32 Million Crypto Heist Halts Tokyo Exchange

$32 Million Crypto Heist Halts Tokyo Exchange

Tokyo’s Bitpoint Japan Exchange has…

Jan Bauer

Jan Bauer

Staff Writer, Safehaven.com

Jan is a writer for Safehaven.com She has 15+ years experience in FX trading and focuses on crypto currencies, FX, gold and silver investments

Contact Author

  1. Home
  2. Cryptocurrencies
  3. Other

Another Trillion-Dollar Wealth Fund Eyes Crypto Exposure

BTC

If you think no one’s interested in volatile cryptocurrency outside of crazed individuals who don’t understand the risk they’re taking—think again. The ultra-wealthy have lined up, too, and even a trillion-dollar wealth fund is adding crypto to its portfolio.

In a Knight Frank survey of more than 500 private bankers who represent $3 trillion in managed wealth, more than 21 percent said they had not only invested in cryptocurrency, but increased their investments last year.

It shouldn’t come as much of a surprise that some swathes of the ultra-wealthy have heavily invested in crypto. After all, the average Joe investor would hardly have managed to bring cryptocurrencies’ total market cap from $17.7 billion in January 2017 to over $615 billion by the end of the same year.

That said, equities are still the favorite of the ultra-rich, but cryptocurrencies are gaining traction.

(Click to enlarge)

Trillion-dollar Boston-based Wellington Management Co. is the latest major wealth management fund to talk about adding cryptocurrencies to its portfolio. It even recently upgraded its systems to enable Bitcoin derivative trading, and now it’s taking positions on crypto-related companies, according to Bloomberg. Related: Nasdaq Hits Record High After Regaining February Loses

That doesn’t mean Wellington is throwing caution to the wind. It’s not going for direct exposure to cryptos as it manages over $1 trillion in client funds.

More cautious exposure might be to related industries, such as the hardware for crypto-mining, and most notably—the soaring semiconductor industry, where stocks such as Nvidia (NYSE:NVDA) and Micron (NYSE:MU) have been stellar performers over the past year.

As Wellington notes in a recent statement carried by Bloomberg: “Crypto is a real thing — it’s not going to go away. This year, the world is starting to come to terms with the existence of crypto. It’s based on blockchain, and it’s very secure and very low overhead. I think there’s clearly real utility. It’s a real phenomenon, and so everyone is coming to terms with it.”

The crypto ball is rolling, and Wellington’s testing of the crypto waters may lead to similar moves by other institutional investors, says Bloomberg.

What’s less clear is how the ultra-wealthy view blockchain itself—the digital ledger that forms the backbone of cryptocurrency--and how they differentiate it from crypto coin.  

According to Knight Frank’s Nicholas Holt, speaking on CNBC:

"In a separate question, we asked about their understanding of blockchain and there's still a huge amount of misunderstanding about blockchain.”

"So, although people are getting on the train about investing in cryptocurrencies, perhaps there's not a full understanding of what this could mean to their wealth portfolio," Holt added.

In other words, we’re only just beginning to tap into the biggest wealth available for crypto, and when all this big money starts to see the massive opportunities in the much wider blockchain, we might be looking at a very different investment picture.

By Jan Bauer for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment