The market has been dominated by digital assets with the potential to grow in value, but many investors are relying on traditional markets. Demand for crypto-related products and services is growing quickly. These investors will need to pay attention and understand the risks of not holding a position in cryptocurrencies by taking their advice or investing through an advisor that can offer exposure.,
With the crypto market near a historic high, cryptocurrency hedge funds are at their most popular in years. However, many institutional investors who have been left out of this emerging asset class have been pushed to develop new strategies for investing in cryptocurrencies without getting into anything that could lead to hefty losses.The notion that bitcoin and other cryptocurrencies are in a bubble is wrong. The monetary revolution has to happen eventually, but watch out for the ‘crypto-apocalypse’ as everyone panics simultaneously when it happens.,
Bloomberg strategist Michael McDonough has warned that investors with zero crypto exposure risk being left behind. He says it is important to have a diverse portfolio of money managers in order to avoid the risk of missing out on the next big thing.
According to Bloomberg’s senior commodity strategist Mike McGlone, the career risk associated with cryptocurrency is shifting to money managers who have no exposure to digital assets rather than those who are already invested, highlighting a dramatic shift in institutional acceptance of Bitcoin (BTC) and decentralized finance.
Bloomberg’s Crypto Outlook for November highlighted 2021 as “simply another foundation year for the cryptocurrency sector,” emphasizing the long-term value proposition of digital assets. Money managers “risk falling behind and failing peers who buy crypto assets” in this scenario, according to McGlone.
“Our graph sees the Bloomberg Galaxy Crypto and DeFi indices outperforming the S&P 500 by more than 200 percent in 2021.”
Despite the fact that cryptocurrency is significantly more volatile than conventional investments, selloffs in assets like Bitcoin and Ether (ETH) “seem to be drawing responsive purchasers, most of whom face the risk of falling behind by shunning crypto allocations.”
Bull markets are all about dangling positive carrots, and #Bitcoin and #Ethereum have plenty of them ahead of them. The introduction of Bitcoin ETFs in the United States looks to be a step toward what most investors would prefer: ETFs that monitor the crypto market, similar to the S&P 500. pic.twitter.com/xMQtBdQ5nA
October 25, 2021 — Mike McGlone (@mikemcglone11)
“Managers are supposed to spot huge trends ahead of the crowd,” McGlone said, “a task that becomes much more difficult if they depend on typical portfolio techniques like allocating 60% to stocks and 40% to bonds.” Many investment managers have cautioned that in today’s market, the typical 60-40 portfolio is no longer enough.
JPMorgan believes BTC’s ‘fair price’ is $35K… yet it still expects cryptocurrency to ‘outperform’.
McGlone accurately forecasted the early phases of Bitcoin’s fourth-quarter breakthrough, predicting that the $50,000 barrier has likely switched to support, as Cointelegraph revealed in early October. The expert predicted that $100,000 BTC will be in play by 2021, a prediction that was echoed in the newest research.
According to Cointelegraph Markets Pro, the flagship cryptocurrency was valued $62,080 at the time of writing. In October, Bitcoin reached a high of $67,000 before falling down.
Bitcoin’s price has been over $60,000 for quite some time. Cointelegraph Markets Pro is the source of this information.
According to Grayscale’s Michael Sonnenshein, Amber Group’s Jeffrey Wang, and Tyr Capital’s Edouard Hindi, investment managers and financial advisors will play a stronger role in the cryptocurrency industry. Cointelegraph spoke with the three CEOs in the first quarter to measure institutional interest in crypto investments. According to them, the “career risk” of investing in cryptocurrency had significantly decreased. According to Edouard Hindi, the ultimate domino might be fiduciary standards:
“Now that custodial and regulatory hurdles are gradually falling, the impression that ‘fiduciary standards’ remain a difficulty in publicly advocating for the asset class to be included in clients’ portfolios might still be preventing a larger acceptance of crypto by financial advisers.”
The “is crypto in a bull market” is something that many investors are concerned about. Bloomberg strategist Tom Lee believes that money managers with zero exposure risk being left behind.
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