The investment management firm Cambridge Associates urge institutions to put their money into cryptocurrencies. Cambridge argues that it is time to explore the opportunities and invest for the long-term.

Institutions should explore cryptocurrencies

Cambridge Associates is a global consultant for pensions and endowments and work with institutional investors and family offices. They manage custom investment portfolios that aim to generate outperformance, according to their website. The firm currently manages $300 billion worth of client’s assets.

In an interview with Bloomberg on Monday, February 18th, an analyst from Cambridge said that institutions should explore cryptocurrencies. He said:

“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.”

The firm advises investors to deep dive into the various aspects of cryptocurrencies. From investing in venture capital to trading tokens on exchanges. Despite the year-long decline in the value of the cryptocurrency market, Cambridge believes we are still in the developing stages of the industry. The analyst said:

“The dramatic declines that swept across the crypto space raised questions about the future of these assets and the blockchain technology that underpins them. By looking across the investment landscape, we see an industry that is developing, not faltering.”

Are Institutions getting into cryptocurrencies?

Institutional investments are rare at the moment, but bring cheer to crypto enthusiasts who say a wave of institutional investors could bring greater credibility to the market. However, Last week two pension funds in the U.S. anchored Morgan Creeks crypto-focused investment fund. Katherine Molnar, chief investment officer of Fairfax County’s police officer’s retirement system, stated:

“Blockchain technology is being applied in unique and compelling ways across multiple industries. We feel it is important to be opportunistic and are excited to participate in this emerging opportunity.”

Even though some institutions look at cryptocurrencies, the Bitcoin guru Mike Novogratz argues that most institutions wait for the core infrastructure to be in place. The institutions that seem to be waiting is no less than Nasdaq, Fidelity with its $7 trillion under management and Intercontinental exchange with Bakkt among others. Fidelity even argued that they would launch their custody platform in March.

The future will prove if Cambridge associates are right regarding cryptocurrencies and the urge for institutions to get into the asset class.