A $1 Trillion Money Manager Is Adding Cryptocurrencies To Its Portfolios
Content adapted from this Zerohedge.com article : Source
The big banks are coming to cryptocurrency.
This week we got the announcement that Goldman Sachs is buying Circle for $400M. JPMorgan, one of the biggest critics of bitcoin, has been buying bitcoin-backed ETNs, claiming it is for their clients.
Now we get this from Bloomberg:
As Bloomberg reports, Boston-based Wellington Management Co. - a massive fund company with $1 trillion AUM - is considering adding cryptocurrencies to some of its portfolios, according to a February report from one of its equity analysts.
The company has already upgraded the system to handle bitcoin deriviatives from both the CBOE and CME. This is in addition to investing in select chipmakers who cater to the miners.
Wellington's trial balloon comes at an interesting time: Late last night, the Wall Street Journal reported that the SEC has issued subpoenas and information requests to certain high-profile ICOs, including a Overstock.com's planned tZero offering.
That’s a great thing if you consider what they had been telling for the past few years when stock market was understood by only word “UP”, now they see some trouble on the road ahead so they are reconsidering their options or perhaps they are inspired by Goldman Sachs' all-in approach to cryptocurrencies and blockchain technology including possibly launching the first Wall Street crypto trading. However, they couldnt beat the stock market index generally, so now people should trust them investing in crypto? They have been loosing money all over. People should not trust them, they should invest in crypto directly instead. However their money are always welcomed as long as manipulating is not involved, but let’s not be naive, it always will.
A hedge fund hedges their bets so their return on average is usually lower than that of a pure equity index like the spy, but they actually take on less risk. This hedged risk allows them to manage massive billion dollar portfolios. Sure you could just stick all that money in the s&p500 and possibly get a larger return, but all your eggs are in one basket and your risking a lot more that way.
Goldcorp CEO announces his plan for a gold backed cryptocurrency in order to give Bitcoin a run for its' money. The Royal Canadian Mint is involved. This should take a very big chunk of gold out of action so that the Chicago and London manipulators have to look harder elsewhere for physical. I can see other gold companies possibly joining in the action for Jan. 2018. It's definitly a good plan for the mining industry. Cut off the supply. Here's the CEO on a Kitco interview talking about it:
http://www.kitco.com/news/video/show/BMO-Conference-2018/1870/2018-03-0…
Goldcorp CEO announces his plan for a gold backed cryptocurrency in order to give Bitcoin a run for its' money. The Royal Canadian Mint is involved. This should take a very big chunk of gold out of action so that the Chicago and London manipulators have to look harder elsewhere for physical. I can see other gold companies possibly joining in the action for Jan. 2018. It's definitly a good plan for the mining industry. Cut off the supply.
The market for digital coins and tokens hit over $800 billion and bitcoin soared close to $20,000, according to data from CoinMarketCap . The rapid rise of the market precipitated the launch of a number of crypto-focused investors. At last check, over 220 such hedge funds exist, according to a Reuters report .
But mainstream money managers have stayed away. To be sure, the cryptocurrency market is brimming with fraud, uncertainty, and hacks. JPMorgan estimates that a third of bitcoin exchanges have been hacked.
Looking at the market more optimistically, Wellington notes that the market's infrastructure is falling into place.
awesome
2018 is the year of change. Adoption of important decisions, the emergence of a new cryptocurrency. Who knows, maybe bitcoin will cease to be the main crypto currency. I believe in other cryptocurrencies. For example, in SmartCash, which can change the world much more than we think.
Some investors / traders / capital is leaving Poloniex because Circle bought the exchange.... Those people want to be independent, and not be tight to Bankers in any way.
This will be very interesting period in next few months: where the smart money will go then?