Occupational risks associated with cryptocurrency are shifting towards asset managers who do not have access to digital assets, as opposed to those who have already invested, highlighting the massive shift in institutional use of Bitcoin (BTC) and decentralized finance, according to a senior analyst. in Bloomberg. … strategist Mike McGlone.
Bloomberg’s forecast for November describes 2021 as another key year for the cryptocurrency market, further highlighting the long-term value proposition of digital assets. In this environment, wealth managers risk being left behind and inferior to their crypto-holders, McGlone wrote, adding:
“Our chart shows a 200% advantage over the Bloomberg Galaxy Crypto and DeFi indices over the S&P 500 in 2021.”
Although the cryptocurrency exhibits much higher volatility than traditional investments, selling assets such as Bitcoin and Ether (ETH) appears to be “attracting responsive buyers, most of whom face the prospect of being late while avoiding crypto distribution.”
McGlone went on to explain that “managers are expected to pick up on important trends in front of the masses,” which becomes more difficult if they rely on traditional portfolio strategies such as 60% equity and 40% bond allocation. Many asset managers have warned that the 60-40 traditional portfolio is no longer enough in today’s market.
On the topic: JPMorgan Says “Fair Price” BTC is $35,000…But Still Expects the Crypto to Outperform
As Cointelegraph reported in early October, McGlone correctly predicted the early stages of the Bitcoin halving in the fourth quarter, arguing that the $50,000 resistance was likely to be replaced by support. The analyst said $100,000 of bitcoin is expected in 2021 — a view that was confirmed in the latest report.
At the time of writing, according to Cointelegraph Markets Pro, the price of the main cryptocurrency is $62,080. Bitcoin peaked above $67,000 in October before correcting downward.
Bitcoin price remains consistently above $60,000. Source: Cointelegraph Markets Pro
Investment managers and financial advisors are expected to play a more important role in the cryptocurrency market, according to Michael Sonnenchin of Grayscale, Jeffrey Wang of Amber Group and Edward Hindi of Tyr Capital. In the first quarter, Cointelegraph polled three CEOs to gauge institutional interest in cryptocurrency investments. In their opinion, the “professional risk” of investing in cryptocurrency has decreased significantly. The most recent dominoes, according to Edward Hindi, the criteria for trust can be:
“Now that guardianship and regulatory barriers are gradually eroding, the broader use of cryptocurrencies by financial advisors may still be hampered by the notion that ‘trust standards’ remain an issue for the overt protection of asset class inclusion in clients’ portfolios.”