{"id":241188,"date":"2021-05-03T21:00:00","date_gmt":"2021-05-03T18:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/financial-advisers-lead-the-institutional-push-toward-crypto-adoption\/"},"modified":"2021-05-03T21:00:00","modified_gmt":"2021-05-03T18:00:00","slug":"financial-advisers-lead-the-institutional-push-toward-crypto-adoption","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/financial-advisers-lead-the-institutional-push-toward-crypto-adoption\/","title":{"rendered":"# Financial advisers lead the institutional push toward crypto adoption"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35fe672fc2c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35fe672fc2c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/financial-advisers-lead-the-institutional-push-toward-crypto-adoption\/#%E2%80%98Curiosity_and_demand\" >\u2018Curiosity and demand\u2019<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/financial-advisers-lead-the-institutional-push-toward-crypto-adoption\/#Crypto_exposure_no_longer_%E2%80%98career-ending\" >Crypto exposure no longer \u2018career-ending\u2019<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/financial-advisers-lead-the-institutional-push-toward-crypto-adoption\/#A_changing_landscape\" >A changing landscape<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Financial advisers lead the institutional push toward crypto adoption <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvYjg2YjRjYjMtZjExNi00NjBkLThmMzktZjEwOGVlZGFkMzc3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>In the past, there were plenty of reasons for financial advisers to dismiss Bitcoin (BTC) and other cryptocurrencies as a worthy investment, but all of that is starting to change as more institutions become attuned to the digital asset class. A face-melting rally for Bitcoin between September 2020 and April 2021 amplified the need to push beyond the narrative that digital assets are simply too volatile to include in client portfolios.\u00a0<\/p>\n<p>In a keynote address at the 2021 virtual CFC St. Moritz Conference in January, Grayscale CEO Michael Sonnenshein outlined six major <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">theme<\/a>s that could shape the cryptocurrency market in the near future. One of those themes was the potential for greater adoption among financial advisers. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"%E2%80%98Curiosity_and_demand\"><\/span>\u2018Curiosity and demand\u2019<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In a follow-up interview with Cointelegraph, Sonnenshein explained that \u201ccuriosity and demand from clients are driving financial adviser interest in crypto.\u201d His conclusion stems from a preliminary survey commissioned by Grayscale showing that \u201cmore than half of advisers are receiving questions from their clients about cryptocurrencies.\u201d<\/p>\n<p>While this may not drive im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te action, cryptocurrencies have certainly become a consideration for advisers, he explained. \u201cUltimately, financial advisers are responding to client demand,\u201d he said, adding: <\/p>\n<blockquote><p>\u201cCrypto <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly and Bitcoin specifically has been well covered in the press, with major corporations and financial institutions making Bitcoin part of their balance sheets, and notable entrepreneurs and investors voicing their investments in Bitcoin. If you\u2019re a knowledgeable investor, you\u2019re going to want to know more about this asset class, and if you have a financial adviser, you\u2019re going to ask them about it.\u201d<\/p><\/blockquote>\n<p>Sonnenshein also noted that financial advisers are among the investors who invest in Grayscale&#8217;s family of funds, whose combined assets now <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Grayscale\/status\/1388232662960287749\">exceed<\/a> $46 billion. &#8220;Bitcoin remains the most popular digital currency, though we also see growing interest in Ethereum and other digital assets as well,&#8221; he said.<\/p>\n<p>Edouard Hindi, co-founder and chief investment officer of Tyr Capital, a United Kingdom-based cryptocurrency hedge fund manager, said financial advisers have increased their allocation of digital assets, especially Bitcoin, over the last six months. The shift has also been observed at private banks, which have gone from seeking education on cryptocurrency to investing directly with Tyr Capital Arbitrage. <\/p>\n<p>He explained that \u201cthe bulk of the interest we are seeing remains concentrated on the directionless high risk\/reward attributes of funds like Tyr Capital Arbitrage and directional exposure to Bitcoin.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Crypto_exposure_no_longer_%E2%80%98career-ending\"><\/span>Crypto exposure no longer \u2018career-ending\u2019<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bitcoin\u2019s newfound legitimacy within the institutional ranks has eliminated much of the so-called \u201ccareer risk\u201d involved with investing in the digital asset market. As Hindi noted, one year ago finance professionals were thought to be taking a \u201ccareer-ending risk\u201d for investing in crypto.<\/p>\n<p>Now, it\u2019s considered career-ending not to have any exposure to digital assets. The final domino to fall, Hindi believes, could be fiduciary standards: <\/p>\n<blockquote><p>\u201cNow that custody and regulatory barriers are slowly dropping, what could still be hindering a broader adoption of crypto by financial advisors is the perception that &#8216;fiduciary standards&#8217; remain a challenge in openly advocating for the asset class to be included in customers\u2019 portfolios.\u201d<\/p><\/blockquote>\n<p>Jeffrey Wang, head of Americas for Amber Group, a crypto-finance startup founded by former Morgan Stanley, Goldman Sachs and Bloomberg professionals, believes independent advisers have a lot more freedom to diversify into crypto than the major banks. <\/p>\n<p>\u201cI think there will be a large bottleneck for the advisers who work at the firms owned by big banks to offer crypto that isn&#8217;t in the form of a listed ETF [or] security,\u201d Wang said. \u201cThese banks aren\u2019t nimble enough to expand their wealth management offerings, especially for non-listed crypto assets.\u201d\u00a0<\/p>\n<blockquote><p>\u201cIt is a huge undertaking for these firms\/banks to be able to add offerings in crypto in terms of adopting their existing risk management systems, infrastructure, compliance, legal, front office trading systems so the decision won&#8217;t come without a lot of work and due diligence.\u201d<\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"A_changing_landscape\"><\/span>A changing landscape<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While institutional adoption of digital assets remains nascent, several major investors and corporations have made a big splash by acquiring Bitcoin. Legendary investors Paul Tudor Jones and Stanley Druckenmiller own BTC. On the corporate side, MicroStrategy and Tesla have acquired billions of dollars\u2019 worth of Bitcoin to hedge against currency debasement. MassMutual, a Massachusetts-based insurance firm, purchased $100 million worth of BTC in December 2020. It\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bitcointreasuries.org\/\">estimated<\/a> that businesses currently hold nearly 6.8% of the circulating Bitcoin supply. <\/p>\n<p>Meanwhile, major institutions including BlackRock, Morgan Stanley, Goldman Sachs, Citibank and JPMorgan Chase have adopted a more positive outlook on cryptocurrencies. BlackRock\u2019s leadership has gone as far as comparing Bitcoin to gold, with CIO Rick Rieder claiming that BTC will eat away at the precious metal\u2019s market cap in the long run. <\/p>\n<p>Jeffrey Wang believes institutional adoption will be \u201cvery prevalent\u201d in the next 12 to 18 months, going as far as saying that \u201cthe majority of firms will embrace blockchain in some way.\u201d <\/p>\n<p>So far, the latest corporate earnings season on Wall Street hasn\u2019t revealed any new crypto investors, but that could soon change as the bull market continues to grow. Tesla, meanwhile, announced that it sold a portion of its Bitcoin for a significant profit, a move that CEO Elon Musk said demonstrates the asset&#8217;s liquidity. Musk later confirmed that he has not sold any of his Bitcoin.<\/p>\n<p>There&#8217;s also strong evidence that the venture capital world is backing cryptocurrency projects with ever-growing conviction. In addition to the dozens of VC-led investment rounds covered by Cointelegraph in recent months, Andreessen Horowitz is reportedly eyeing a new crypto-focused investment fund worth up to $1 billion. That would align with the venture capital firm&#8217;s recent crypto-focused investments into Aleo and OpenSea, among others.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/financial-advisers-lead-the-institutional-push-toward-crypto-adoption\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Financial advisers lead the institutional push toward crypto adoption &#8221; In the past, there were plenty of reasons for financial advisers to dismiss Bitcoin (BTC) and other cryptocurrencies as a worthy investment, but all of that is starting to change as more institutions become attuned to the digital asset class. A face-melting rally for&#8230;<\/p>\n","protected":false},"author":1,"featured_media":241189,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvYjg2YjRjYjMtZjExNi00NjBkLThmMzktZjEwOGVlZGFkMzc3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74863,75238,71939,73711],"class_list":["post-241188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-financial-services","tag-banks","tag-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/241188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=241188"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/241188\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/241189"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=241188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=241188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=241188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}