Boston-based pension and endowment consulting firm Cambridge Associates believes institutional investors should turn their eyes to cryptocurrencies in spite of the risks, Bloomberg writes. As Cambridge Associates wrote in a research note, “Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term.’’
Many consider cryptocurrency markets to be too volatile, choosing to stay away altogether; the crypto winter has done cryptocurrencies no favours, either. Nevertheless, with the total crypto market cap over $120 billion, it's not going anywhere. Cambridge Associates recommends institutions learn about the industry and various ways of investing. Although still uncommon, as Bloomberg notes, institutional investment may give the cryptocurrency market greater credibility.
“The dramatic declines that swept across the crypto space raised questions about the future of these assets and the blockchain technology that underpins them,’’ Cambridge Associates said. “Yet, in looking across the investment landscape, we see an industry that is developing, not faltering.’’