Starting this month, we're rolling out a new content format.
All subscribers will benefit from the big-picture outlook of blockchain technology adoption, which includes digital assets and cryptocurrencies.
In the day-to-day noise, it's easy to lose focus. We want to help you see the future as a place of possibilities and opportunities.
We're not fans of consuming useless information. Time is short and actionable information is the name of the game.
A behind-the-scenes trend skyrocketing right now is that those in the right circles get the best actionable information. But, unfortunately, everyone else gets unactionable information.
We're moving into an era of real-time information, where financial transactions can be verified, cleared, sent, and received in nano-seconds. For starters, those with the best intel and analysis will be ahead of major trend shifts across manufacturing, finance, sales, marketing, supply-chain management, logistics, and e-commerce.
And this change won't be easy, soft, fair, kind, or good for everyone.
The market volatility has changed. For our premium subscribers, we'll show you what to expect this month.
Let's take a quick look at what has happened since 2020 and the current path of big money adoption – The Institutions.
The Current State of Crypto’s Institutional Adoption
The adoption of cryptocurrencies by institutional investors has increased steadily over the last few years. Diverse top institutions and sectors have developed a keen interest in cryptocurrencies, stepping into the DeFi (Decentralized Finance) and Web 3.0 ecosystem.
Institutional adoption of cryptocurrency has been experiencing an optimistic curve. 2021 witnessed an 880% spike in worldwide crypto adoption. Besides, El-Salvador adopting Bitcoin as a legal tender, many governments are planning to regulate cryptocurrencies and incorporate them into their financial systems.
Financial institutions like hedge and pension funds are beginning to blend cryptocurrencies into their offerings. Even as regulations seek to provide guardrails for cryptocurrency, institutions worldwide are expanding crypto trading offerings. This indicates that the financial sector and businesses should prepare for the approaching tidal wave of change.
Why Institutional Investors Are Adding Crypto
Institutional investors have continuously entered the race to add crypto assets to their portfolios. As a result, compared to traditional markets, cryptocurrencies have already revolutionized the time it takes to earn a 2x, 5x, or 10x return.
Even in this bearish climate of economic and geopolitical uncertainties, the macro-trend is positive for this technology.
After witnessing the performance of prominent technological enterprises, such as Square, Tesla, and MicroStrategy, who added cryptocurrencies to their portfolios, smaller institutions have acknowledged the competitive advantages of adding cryptocurrencies to their treasuries.
World leaders like Morgan Stanley, Goldman Sachs, and BlackRock are already keeping digital assets in their portfolios, giving corporations, institutional investors, and fund managers confidence to assume an identical approach, making their portfolios future-safe.
How Institutions are Diversifying into the Crypto Asset Class
Institutions are diversifying into cryptocurrencies through three main strategies -
- Funds: Institutional investors have recognized that they can effortlessly gain cryptocurrency exposure with minimal infrastructure by investing in funds. Crypto ETFs (Exchange Traded Funds) are becoming common in portfolio diversification.
- Direct Holdings: Investors who wish to have direct exposure to the asset class go for a straightforward strategy of buying and holding their cryptocurrencies through a custodian.
- Derivatives: Synthetic access to cryptocurrencies is another option. NDFs (Non-Deliverable Funds) provide a way for institutions to get exposure within existing compliance frameworks.
In the months ahead, expect to hear more news concerning the strategies institutions use to gain access to this asset class.
What Does the Future Look Like?
The fact is evident from the number of organizations and institutions showing confidence in the robust future of cryptocurrency offerings, despite this year being the worst performing since March 2020.
While many wait for clarity about regulations, the simultaneous growth of blockchain technology shows that this trend has no signs of stopping or reversing.
Expect unprecedented events to emerge in the months ahead, as digital assets and cryptocurrencies are at the center stage during yet another global financial crisis.
For our premium members, we see the light at the end of the tunnel, but not without extreme turbulence.
Let's look...
