Wealth Managers and VCs Help Drive Institutional Crypto Adoption – Wave Financial execs
Two executives from Wave Financial, an asset management firm offering bespoke strategies to high net worth individuals and entities, reported seeing an increase in institutional demand for crypto products amid the bear market.
Speaking to Cointelegraph at the Blockchain Futurist Conference in Toronto on Wednesday, Wave Financial head of business development Mike Jones said institutional investment in crypto could be driven by the high end of asset management companies. heritage, including Morgan Stanley, Merrill Lynch and Goldman Sachs, looking for ways to allow their clients to be exposed to space. Jones cited the example of BlackRock’s partnership with Coinbase on August 4, a move that will give users of asset manager Aladdin’s institutional investment management platform access to crypto trading, custody, prime brokerage and reporting.
In addition to wealth managers, the Wave executive said venture capital could experience “strong growth” in part due to demand for innovative investment vehicles. Wave Financial’s investment and venture capitalist Gerard Berile added that VCs giving clients exposure to crypto without going through centralized exchanges and still dealing in large-scale volume have been a “net positive for the industry.” industry as a whole”.
“On the corporate side, the bear market has been somewhat positive,” Berile said. “Over the last year, year and a half, we’ve seen the valuations of many different companies get incredibly high – a little frothy, you might say. Over the last six months or so, we’ve seen company valuations come back at slightly more realistic valuations, and now is the perfect time to start allocating capital.
“What’s encouraging from a broader market perspective is that you think about the last cycle – a few years ago, a lot of the chatter that surrounded the ecosystem at the time was, ‘Is this the end of crypto? Is crypto dead?” Jones said. “From an institutional adoption and institutional demand perspective, the question now seems to be much more around ‘Is it the right time? to enter ?'”
“Things are much more encouraging, although it is clearly a painful time. It also comes with opportunities, especially for people who build in space.
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Blockchain data appears to support some of Berile and Jones’ claims. Crypto intelligence firm IntoTheBlock reported in March that the number of large transactions on the Cardano blockchain had increased more than 50 times in 2020, suggesting “growing institutional demand.” However, US regulators have not approved certain crypto investment vehicles like an exchange fund with direct exposure to Bitcoin (BTC) – many have said such a listing could attract new investors to the market.