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- Some asset managers are “sophisticated” and “comfortable” with cryptocurrencies, whereas most rest still have trouble handling them
- Demand for digital assets among larger investors has increased tremendously, yet there still exists a wide knowledge gap among the financial managers
- Increasing institutional interest might boost BTC’s market cap by hundreds of billion dollars
Michael R. Durbin, the president of Fidelity Institutional, feels, presently only a few of the existing wealth managers are well-versed with crypto-based technologies and digital assets, whereas most of them lack the required in-depth knowledge, i.e. are still in their learning phase.
Durbin’s Idea of Wealth Managers
In an interview at Reuters Digital Asset Week, Durbin described some asset managers as “sophisticated” and “comfortable” with cryptocurrencies and their integrated technologies, whereas most of the rest still seem to have trouble handling them.
As per him, those “sophisticated” ones actually know what they are doing, and additionally, so does their end investor base. But a large part of the crypto-population is still learning.
Latest Additions to the Crypto-verse
Fidelity Institutional is a subdivision of Fidelity Investments. At the end of 2020, with a client asset volume of $9.8 trillion, Fidelity was a few of the first to take cryptocurrencies seriously back in 2018 and now listed as the world’s top investment managers.
Derbin also highlighted that even though there still exists a wide knowledge gap among the financial managers, the demand for digital assets among larger investors has increased tremendously. Tesla, MicroStrategy, Goldman Sachs and BNY Mellon are a few of the latest additions to the crypto-verse, all via Bitcoin. In the last year alone, the top-most cryptocurrency witnessed a value surge of over seven-fold and earlier this month was trading at $61,200.
Fidelity’s Prediction and Bitcoin
Fidelity Digital Assets, in October 2020, issued a report predicting shortly, the increasing institutional interest might boost the BTC market cap by hundreds of billion dollars. They even advised that by allocating a portion of their assets to BTC, the portfolio managers might gain a significant increase in their returns.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
