Institutional Adoption in Crypto Markets

With all the excitement being generated by institutional investment in crypto markets, it is easy to forget that a strong business case has to be implemented as well as advanced. Institutional investors entering any market need to be confident they can buy the assets, safekeep them, collect any entitlements and sell them .

The recent investment by Ruffer in Bitcoin has captured headlines, but institutional money has followed the crypto-currency markets for years. Asset manager Fidelity launched a digital asset custody service as long ago as 2018. Mainstream banks, including BNY Mellon, Northern Trust and Standard Chartered are now following suit – precisely because their buy-side clients want to invest in the asset class.

However, while crypto-currency investing appeals to institutional asset managers as a commodity play and an inflation hedge, and their custodians are scrambling to support them, the crypto-currency markets are far from mature. In fact, they are full of complexities and risks that do not stop at volatile prices. Chief among them is compliance risk. It is easy for investors that do not understand such risks to lose their reputation as well as their money.

In this Future of Finance webinar Dominic Hobson will discuss with three crypto-currency converts, all of them veterans of the traditional capital markets, how they are enabling institutional asset managers and their advisers to strike the right balance between risk and opportunity in the crypto-currency markets.

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