Bitcoin Investment

Cambridge Associates: Cryptocurrencies ‘Worthwhile’ For Long Term Investors

Georgi Georgiev | Feb 19, 2019 | 10:00

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Leading institutional investment consulting firm Cambridge Associates holds that institutional investors should consider exploring cryptocurrencies for the long term or ‘hodl’ in Bitcoin lingo. 

Cryptocurrencies May ‘Upend the Digital World’

Cambridge Associates is a Boston-based institutional investment consulting company with more than $300 billion in assets under advisement. It holds that it’s high time for institutions to consider cryptocurrencies, Bloomberg reports.

The firm asserts that, despite the twists and turns, cryptocurrencies may ‘very well upend the digital world.’

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.

However, the consulting firm also recommends spending a “considerable amount of time learning about the space,” exploring the different ways to invest.

Despite the tumbling prices across the entire cryptocurrency market over the past year, Cambridge Associates says that the industry is actually developing.

The dramatic declines that swept across the crypto space raised questions about the future of these assets and the blockchain technology that underpins them. […] Yet, in looking across the investment landscape, we see an industry that is developing, not faltering.

Institutions Dipping Their Toes

Some long-term focused institutions are already taking note and dipping their toes into the arena. According to the Q4 2018 report of digital currency asset manager Grayscale Investments, institutions and retirement accounts comprise the lion’s share in cryptocurrency investing.

Earlier this month, Bitcoinist reported that Fairfax County Employee’s and Fairfax County Police Pension Plans became the first US public pensions to invest in a $40 million cryptocurrency fund.

Former Wall Street hedge fund manager Mike Novogratz recently said that institutional money is going to start flowing into the cryptocurrency market within the next 6 to 12 months, following the roll-out of custody solutions by trusted institutions such as Fidelity.

Meanwhile, Fidelity’s Bitcoin custody service is set for launch in March.

What do you think of Cambridge Associates’ position on cryptocurrency? Don’t hesitate to let us know in the comments below!

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