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Crypto beyond the hype: Insights for institutional investors

Ranjit Ramachandran, CFA, Equity Portfolio Manager
Matt Lipton, CFA, Portfolio Manager
2022-12-31
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Archived pieces remain available on the site. Please consider the publish date while reading these older pieces.

The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.

Cryptocurrencies continue to make headlines as investors consider their applications for everything from the metaverse to inflation to the conflict in Ukraine. In addition, the Biden administration’s recent executive order on digital assets signals a positive step toward regulatory clarity for crypto.

Here, we share a few practical insights on cryptocurrencies for institutional investors evaluating the asset class, including our views on custody, regulation, and more.

Evaluating cryptocurrencies as an asset class

Have bitcoin and other cryptocurrencies entered the mainstream? We profile the case for cryptocurrencies as a new asset class and define crypto terms institutional investors need to know.

Crypto custody for institutional investors 

From cold storage to regulation, we highlight three key considerations for institutional investors exploring how to custody crypto assets.

The future of crypto regulation 

In our view, regulation is vital to the future of the crypto industry. Here, we discuss the importance of regulation, the concept of regulatory arbitrage, and why the US is the critical regulator to watch.

Crypto exposure without owning tokens 

We outline why some institutional investors may already have exposure to cryptocurrencies through their investments in companies with revenue tied to crypto prices and volumes.

Bottom line on crypto for institutional investors

The cryptocurrency asset class is rapidly evolving and growing in importance, presenting widespread uses cases and impacts on a range of topics relevant to institutional investors. In our view, it is crucial for investors to stay up to date on the opportunities it presents, its potential risks, and why and how to gain exposure.

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