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- Christopher Tyrer, a top executive at Fidelity Digital Assets Europe, a Bitcoin custodial firm, said in an interview that the crypto assets are mirroring the commodities of the 1990s.
- At that time, too, the blue-chip companies seemed hesitant to invest in commodities just like today.
- The executive notes that commodities also witnessed a period of no institutional investments before experiencing a heavy flow of institutional investments.
The Crypto industry is emulating the commodities of the 1990s, says a top executive at Fidelity Digital Assets Europe, a Bitcoin custodial firm.
Executive Christopher Tyrer, in the latest interview with Raoul Pal, macro guru, and founder at Real Vision, points out the crypto markets are following the same trajectory that commodities did decades ago.
Further, the executive notes the questions: Does crypto fits anywhere in the traditional diversified investment portfolio? Is it really an investable asset class? – are the same questions that were raised about the commodities 20 years ago.
Moreover, it is in general knowledge that every managed portfolio has some allocation to commodities as a diversifier; Tyrer points out that the parallel in the setup of today and then has some uncanny similarities.
In the 2000s, too, there was hesitancy among blue-chip companies when it came to investing in commodities until a straightforward infrastructure was not set up. Cut to the present; the executive says crypto assets are tracing a similar growth pattern.
It wasn’t common in the early 2000s for most investment portfolios to allocate commodities. In their true sense, they were corporate hedging markets. Soon, the market witnessed a series of product regulatory market access and infrastructure developments that laid the foundation, enabling institutional participation. Again, the digital assets are going through the same thing.
Tyrer also pointed out a two-year period of stagnation in which institutions maintained their distance with the commodities but soon after started investing capital worth millions of dollars into the then-growing industry. The executive points out that cryptocurrencies can experience the same thing.
The two years from 2000 to 2002 witnessed no institutions investing in commodities. The next eight-year period, from 2003 to 2010, saw the flow of $400 billion.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
