Cryptocurrency Adoption: Institutional investors should consider cryptocurrencies, says pension and endowment adviser Cambridge Associates

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The cryptocurrency ecosystem has been a developing field and in a short time, has managed to garner the attention of financial investors. The growing popularity of cryptocurrencies has roped in Cambridge Associates, a consultant for pensions and endowments. As per Bloomberg, Cambridge Associates is of the opinion that institutional investors should consider dipping their toes in cryptocurrencies.

One of the analysts from the Boston-based firm quoted in his research note:

“Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term. Though these investments entail a high degree of risk, some may very well upend the digital world.”

The large institutions have maintained a distance from the decade-old cryptocurrency industry as it is largely unregulated and due to its use in illegal trade. As per the reports quoted by Bloomberg, the collapse in the prices of many big cryptocurrencies, including Bitcoin [BTC], has not helped its case.

Cambridge recommends interested firms to spend “a considerable amount of time learning about the space,” including the different ways of investing, from illiquid venture capital funds to buying tokens on cryptocurrency exchanges. As per the publication, Cambridge advises institutions that manages more than $300 billion. Crypto enthusiasts across the world feel that these, even though a few, investments could bring greater credibility to the crypto market.

Recently, two pension plans in Fairfax County, Virginia, this month, invested in a venture-capital fund for the blockchain and digital assets industry. The publication reported that last year, Yale University invested in a fund that was directed on early-stage projects on cryptocurrencies, new blockchains, and exchanges.

One of the analysts noted:

“The dramatic declines that swept across the crypto space raised questions about the future of these assets and the blockchain technology that underpins them. Yet, in looking across the investment landscape, we see an industry that is developing, not faltering.”


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Namrata Shukla

Namrata is a full-time journalist and is interested in covering everything under the sun, with a special focus on the crypto market.

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