Updated: Feb 26
Finance is a sphere of world trends converted into transactions, profits and acquisitions. Experts might argue otherwise for its complexity but the final breakdown is who gets what, and who controls what. Crypto space started out as an idea for de-institutionalizing finance but, over a decade after the first bitcoin was created, cryptocurrency has become incorporated into finance and is a strong contributor to the national standing among most developed countries.
This sophistication of digital currency has led to the branching out of crypto space to involve several aspects which have been discussed on the TF Block Chain podcast hosted by Jonathan G. Blanco. These branch-outs include; crypto hardware manufacturing, enterprise, taxation and in this latest discussion, investment. While crypto trading and mining are forms of investment in crypto at the surface level, investing time, money and energy into making more money, in recent times the investment in cryptocurrencies have become further institutionalized –leading to a complex nature.
The complexity of crypto investments was extensively discussed by experts in the field, Dan Eyre (Co-founder/CEO, Blockchange) and Brock Connelly (Founder/CEO, Round Block Capital), during the session on ‘Institutional Investors and Crypto 2020’ at the Seattle Chapter of TF Blockchain, led by Paul Rapino.
Dan Eyre offered majority of the information on financial planning and analysis, with due regards to his status as a Registered Investment Advisor (RIA), while Brock Connelly gave the detailed breakdown of digital assets from his position as CEO of a NFA Registered Brokers company, and experience in trading for different people at any level of income. In the course of their discussion, they concurrently explained the evolution of crypotcurrency from an abstract concept into one of the leading investment options for digital assets. With adequate details on the development of major crypto currencies as digital assets for investment purposes, they offered expert advice on the versatility of crypto trading and its implication for national economy, as well as personal financial improvement.
A significant aspect of their discussion was the importance of institutional investors for crypto investments. Typically, institutional investors are groups or companies who put funds towards purchasing real estate, securities, industry shares and a range of financial (profitable) assets. While they purchase the investment, they are simply channels for the primary beneficiaries of the investment benefits. They function in the same way as facilitators for securing profitable investments which they put out for interested individuals to partake in; in some cases, it is the capital contribution of members of that investment pool which is used to purchase and maintain the investment. They also manage the asset, developing and improving it within their assigned jurisdiction, as custodians. During the podcast session, it was also explained that investment marketing is also highly dependent on the intelligence of both broker and owner, as some investors are non-custodians –meaning, they cannot explicitly make decisions for the investment asset and capital.
Investment custodians and/or brokers have the responsibility for access, risk awareness and allowance; this implies that institutional investors have to maintain the sophistication for crypto investments with no compromise and a centralized operation, as well as adequate personnel and provision for operational risk maintenance to secure the interest of all owners, and the institution’s direct investments in the crypto space.
With their roles explained (listen to the podcast for further details), it is relatively easy to understand that institutional investors are major players in the world finance market, and with the introduction of cryptocurrency to national economic activities, it is only expected that institutional investors will pursue active involvement in crypto investments. Crypto currencies are regarded as digital assets, and like most other assets (such as gold), they may depreciate or appreciate, depending on other forces which determine market exchange rates. Gold has a correlation to the core market that crypto currencies also have, making them assets for analysis based on the status of their correlate rates.
A survey conducted by Fidelity Investments (Fidelity Digital Assets) in 2019, showed that 72% of institutional investors prefer to buy investment products that hold digital assets, 57% prefer to buy crypto assets directly and 57% prefer to buy an investment product that holds digital asset companies. This is a breakthrough for the immersion and adaption of crypto currency and the entire crypto space as a major finance alternative globally. To further buttress this point, it is important to note that Wolfs Group and Morgan Creek Capital Management LLC, leading financial companies with investment focus points, have taken large strides in the last few years, to incorporate crypto technology and investments.
CEO of Coinbase, Brian Armstrong, said, about trends in the cryptocurrency space for 2020, that the crypto space is already seeing an influx of hundreds of institutional investors. This is a trend which will only continue to increase exponentially, as more individuals, groups and companies will become interested in purchasing cryptocurrency, among other digital assets.
Still not convinced about this development in crypto space? In March 2019, Jack Dorsey, CEO of Twitter, mentioned that he would hire developers for crypto currency ecosystem projects, as well as the Bitcoin Core. The evidence of interest from these parties is all the encouragement which people, especially those interested in exploring crypto trading and the crypto space in general, need to get involved and hop on the trend of economic activities. In this case, securing active investments in cryptocurrency.
Increased enterprises, the industrialization of crypto space hardware and software, and the addition of institutional investments, it is apparent that cryptocurrency will be experiencing more activities in 2020. To quote a blog post on the 2019 yearly review from Coindesk, ‘…we expect 2020 to be a year of accelerated industry maturation’ (for crypto space).
If you are interested in digital assets investment for cryptocurrency, you can contact a professional digital assets broker or reach out to an institutional investment company with options for digital assets investment (like Round Block Capital and Blockchange).
#TF5 TF Blockchain Conference - Seattle - March 19, 2020
Join us in Seattle on March 19, 2020 as we host #TF5 TF Blockchain Conference, our 5th blockchain, bitcoin, and cryptocurrency conference. We'll have top speakers, influencers, investors, executives, and entrepreneurs discussing the latest in this innovative technology.
Confirmed top speakers are: Christian Hasker, Rahul Sood, Peter Taylor, Kristy-Leigh Minehan, Kurt Wedgwood, Ashley Harrell, Dr. Setrag Khoshaian, Farbood Nivi, Ric Shreves, Kate Mitselmakher, Steven McKie, Rizwan Patel, Paul Gambill, and Derrick Foote.
Early Bird tickets are available here: Early Bird Tickets