The career risk associated with cryptocurrencies is shifting to asset managers not facing digital assets, but to those already invested, highlighting a dramatic shift in institutional adoption of Bitcoin (BTC) and decentralized finance, according to Bloomberg’s lead commodity strategist Mike McGlone.
The November issue of Bloomberg’s Crypto Outlook described 2021 as another pivotal year for the cryptocurrency market and further emphasized the long-term value proposition of digital assets. In this environment, money managers “run the risk of falling behind and undercutting their crypto-owned competitors,” wrote McGlone, adding:
Our diagram shows the over 200% performance of the Bloomberg Galaxy Crypto and DeFi indices in 2021 compared to the previous year. the SP 500 “.
Although cryptocurrencies Exhibit Liquidations of assets like Bitcoin and Ether (ETH) “appear to be attracting receptive buyers, most of whom have the potential to fall behind in avoiding cryptocurrency allocations.”
The bull markets are all about positive dangling carrots and we see a lot ahead of us #Bitcoin and #Ether. The introduction of Bitcoin ETFs in the US seems like an iteration to get to what is better for most investors – ETFs that track the crypto market, like the SP 500. pic.twitter.com/xMQtBdQ5nA
to???? Mike McGlone (@ mikemcglone11) October 25, 2021
The bull markets are all about positive hanging carrots and we see a lot ahead of us for #Bitcoin and #Ethereum. The launch of Bitcoin ETFs in the US seems like an iteration to accomplish what can best serve most investors: ETFs that track the cryptocurrency market, like the SP 500.
McGlone went on to say that “managers are expected to catch the big trends before the crowd,” an accomplishment that becomes much more difficult when they rely on traditional portfolio strategies such as allocating 60% to stocks and 40 % in bonds. Many asset managers have warned that the traditional 60-40 portfolio is no longer enough in today’s market.
As Cointelegraph reported in early October, McGlone correctly predicted the early stages of Bitcoin’s outbreak in the fourth quarter. argues that the $ 50,000 resistance has likely turned into support. The analyst said $ 100,000 BTC is at stake for 2021, an opinion reiterated in the latest report.
As of this writing, the flagship cryptocurrency was worth $ 62,080, according to Cointelegraph Markets Pro. Bitcoin hit a high of over $ 67,000 in October before being revised down.
According to Michael Sonnenshein of Grayscale, Jeffrey Wang of Amber Group and Edouard Hindi of Tyr Capital, investment managers and financial advisers are expected to play a bigger role in the cryptocurrency market. In the first trimester, Cointelegraph interviewed the three executives to gauge institutional interest in crypto investing. In his opinion, the “professional risk” of investing in crypto currencies has decreased significantly. The final dominoes could be fiduciary measures, according to Edouard Hindi:
â ???? Now that custody and regulatory barriers are slowly falling, broader adoption of cryptocurrencies by financial advisors may still consider that the “standard trustees” remain a challenge to be open to the inclusion of the asset class in client portfolios. “