Specializing in pension and endowment consulting, Boston-based Cambridge Associates advises institutions that manage over $300 billion. In a research note published today, analysts at the company wrote:
“Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term. Though these investments entail a high degree of risk, some may very well upend the digital world.’’
Their take on the 2018 bear market took on a similarly encouraging tone.
“The dramatic declines that swept across the crypto space raised questions about the future of these assets and the blockchain technology that underpins them,’’ the analysts wrote. “Yet, in looking across the investment landscape, we see an industry that is developing, not faltering.’’
This sort of sentiment has been echoed across the crypto sector — while the market has been down, teams have remained hard at work on blockchain-based projects, from startups to large institutions, many of whom have begun to invest in the space. Indeed, an investment report from digital asset management fund Grayscale Investments showed that institutional investment in crypto projects has been increasing. As cryptos.com reported last week, two Fairfax, Virginia pension funds invested with Morgan Creek’s new crypto fund.
Still, Cambridge Associates recommends that institutions spend “a considerable amount of time learning about the space” before investing, including looking into various forms of investment, ranging from venture capital (VC) funds to purchasing tokens on an exchange.
That a global firm like Cambridge Associates made such glowing is positive for the crypto space unto itself, but the implications of a company that advises $300 billion potentially recommending crypto as an investment to its clients are massive, especially considering the total market cap of the crypto market is just under $130 billion.