Why the World’s Largest Investor Is Interested in Cryptocurrencies

Nick’s Note: The cryptocurrency market has been on a rollercoaster ride since the beginning of the year. Most of this is due to fear of regulatory crackdowns by world governments.

However, the mainstream media is missing the big picture… While they’re writing fear-inducing headlines, institutional investors are quietly preparing to move trillions into this space. My colleague Greg Wilson has the story below…


By Greg Wilson, analyst, Palm Beach Confidential

“Our bottom line: We see cryptocurrencies potentially becoming more widely used in the future as the markets mature.”

That quote came from investment management giant BlackRock’s weekly commentary series. (You can read the February 26 report right here.)

BlackRock is the largest investment manager in the world with $5.7 trillion in assets under management.

The commentary surprised many. It’s a sharp contrast to the institutional narrative we heard throughout 2017.

For example, JPMorgan Chase CEO Jamie Dimon infamously called bitcoin a “fraud” (he later expressed regret for his comments). Economist Paul Krugman called cryptocurrencies “worthless.” And U.K. Prime Minister Theresa May said that cryptocurrencies are just for criminals.

But those are just the headlines. As I’ll show you today, institutional interest in cryptocurrencies is growing. That’s why you need to get past the volatility and pay attention to the new narrative.

Another Trillion-Dollar Asset Manager Joins the Fray

BlackRock isn’t the only institutional investor that’s bullish on cryptocurrencies.

Less than a week after BlackRock published its analysis, Wellington Management released its own report on crypto assets and the blockchain.

The firm said its investment teams “are evaluating the potential inclusion of crypto assets in client portfolios.”

That’s big news. Wellington is another of the world’s largest asset managers.

It manages over $1 trillion in assets for over 2,000 institutional clients around the world.

The news from BlackRock and Wellington shouldn’t surprise regular readers of The Palm Beach Daily.

It’s all part of the new narrative emerging from Wall Street in 2018… one that’s going to bring trillions of dollars into the space.

Today, I’ll fill you in on it… and why you shouldn’t be concerned about the current crypto sell-off.

The New Wall Street Narrative

We’ve been writing about the new Wall Street narrative on cryptos since late last year.

In fact, we listed it as one of our top three reasons why the crypto market would go 10 times higher in 2018. (Palm Beach Confidential subscribers can access the issue here.)

Here’s what Palm Beach Confidential editor and crypto guru Teeka Tiwari wrote then…

We envision Wall Street’s pitch will be that, by allocating 5–10% of your portfolio to bitcoin and other cryptocurrencies, you can actually bring down volatility. That’s because bitcoin is unaffected by crashes or booms in the stock, bond, oil, or gold markets.

Since then, the narrative has only grown louder.

The Bitcoin Bible

On February 9, JPMorgan released a new research report on digital currencies titled “Decrypting Cryptocurrencies: Technology, Applications and Challenges.”

The media quickly labeled it the “Bitcoin Bible.”

If you thought the report would state all the reasons why JPMorgan is against cryptocurrencies, you’d be wrong.

The report came to some startling conclusions.

Notably, that cryptocurrencies “are unlikely to disappear.”

That probably surprised many who have just kept tabs on the headlines about volatility and uncertainty in the crypto space.

But the report also confirmed what we told readers in December:

If past returns, volatilities, and correlations persist, cryptocurrencies could potentially have a role in diversifying one’s global bond and equity portfolio.

When JPMorgan comes out and says bitcoin can help investors diversify portfolios, it’s a big deal.

It’s a green light to the entire industry that cryptos are a viable asset class that you should add to your portfolio.

Don’t Let the Current Volatility Scare You

If you’re new to the cryptocurrency space, the volatility we’ve seen since the beginning of the year can be unnerving.

But it’s important not to focus on daily price movements. Instead, focus on the big trends in the space.

And one of the big trends is that institutions are entering the space in force.

Teeka calls it the “Second Boom.”

He recently attended a meeting with some of the top blockchain professionals in the world. His conclusion:

I learned a lot at this meeting… But perhaps the most important thing is that investment in blockchain projects is not slowing down. In fact, it’s accelerating. By the end of February, over $1 billion had already been raised by initial coin offerings (ICOs). That doesn’t include the $200 million-plus venture capitalists have invested in blockchain companies since the beginning of the year. It also doesn’t include the reported $850 million raised for messaging platform Telegram’s pre-ICO.

As you can see, there’s a lot of money headed into this space.

Institutions Are Coming to Cryptocurrencies

Cryptos are more off the radar now than at any time in the last two years… And we couldn’t be happier. Over the last two years, we’ve learned to embrace these sell-offs. We’ve found that the gains from these depressed levels can be life-changing.

But we don’t expect prices to stay low for long. As the evidence shows, institutions are coming to cryptocurrencies.

And with their herd mentality, that means we can expect trillions to flow into this space.

The time to get in is now.

Regards,

Greg Wilson
Analyst, Palm Beach Confidential

P.S. Tomorrow at 8 p.m. E.T., Teeka will host a live cryptocurrency broadcast called “The Second Boom: How to Make a Fortune From the Next Crypto Run Up.” Over the past three months, Teeka’s been investigating an event that will cause the next rally in the cryptocurrency market. During the broadcast, he’ll tell you what this event is.

Teeka will also tell you why the recent crypto sell-off is a blessing in disguise. You see, he predicted this sell-off months ago. And it’s part of the reason why he’s revealing this opportunity to you now.

You can reserve your seat for this free event right here.

Posted in Palm Beach Daily