Is Crypto Investment the Next Big Thing for Institutional Investors?

Crypto investment portfolio is the next disruption in asset management.

Photo: Keith Avery / Flickr

Photo: Keith Avery / Flickr

On average, 70 percent of the trading on the NYSE is on behalf of institutional investors. What if cryptocurrencies can fully enable contemporary investments? This means that anyone at any time is in full control of the processes (smart contracts) and can invest in any asset and expect crypto ROI. Hmm, disruptions aren’t always “comfortable” to understand and adapt, but it looks like it is coming.

Digital money is now becoming omnipresent, whether it is trading or mining, people adapt cryptocurrencies at an incredibly high speed and now crypto market capitalization in numbers is ringing the bells, breaking $200 bln.

The industry alone is worth more than world’s 10 top world’s airlines in value, for comparative purposes, it took many many years effort for those airlines to build up their market cap. Crypto is the fastest growing asset class in the whole world economy.

So, it is now interesting to see how digitalization of money can be used in digital investments in digitalized free markets. A few companies understood this trend and came up with solutions and ways to leverage it.

Crypto Asset Management introduced the world’s first crypto-denominated share classes. The company specializes in asset and fund management with primary activity is managing portfolios of crypto assets.

Block Asset Management aims at the long-term capital appreciation of Blockchain technology-related investments while reducing volatility through portfolio diversification.

Iconomi creates a diversified performing fund from a various digital currency allowing people to invest in crypto assets and decentralized economy startups with fiat money.

Blackmoon launches a high yield fund bringing Blockchain flexibility to fiat instruments and the benefits of accumulated financial wisdom to crypto investments.

NaPoleonX is creating a strategy for diversified investments into various assets with cryptocurrencies by becoming the first algorithmic crypto-asset management system. The project stands out as it pioneers penetration of the all-weather performing investment solutions for crypto holders through so-called Decentralized Autonomous Funds (DAFs) – smart contracts that are able to invest in the crypto market through trading bots.

Once launched, DAFs will develop unique strategies by combining algorithmic strategies and leverage ratios to develop unique return targets and risk exposures. The project goes slightly beyond other asset management startups.

By reinventing current investment mechanisms, NaPoleonX will help investor leverage their funds in a diversified way. They will become the first algorithmic crypto asset manager to build the infrastructure and regulatory framework environment with enforced rules where the Blockchain will be employed to ensure fund adherence to its mandate.

Additionally,  DAFs will point out to trade and portfolio information, as well as allow token holders to access and make their investment decisions based on reliable data generated by DAFs. After that, investors can start using the platform to make investments into various assets using cryptocurrencies.

The team aims to involve institutional investors as the capacities of the platform which is based on Ethereum network, can manage large funds. Would 70 percent of trades by institutional investors now take place on the digitalized algorithmic asset management Blockchain backed system?

In this new investment world aimed to achieve full autonomy and complete control over investments, search for transparency is the invisible hand which will stimulate further evolution of the crypto world. Time will prove the theories but looking at how things have evolved lately and the pace people embrace and create disruptions, it is obvious that the human evolution has never stopped.

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