According to an analyst working on the matter, most money managers continue to be cautious about crypto investing. Even though some big-name investors started investing their money behind digital coins.
Katie Stockton, Fairlead Strategies founder, spoke at Yahoo Finance’s All Markets Summit Plus. She said that crypto adoption continues to be in the early stages, with little institutional capital running into it.
She also said that the current situation could accelerate and progress for individuals and institutions as well.
Overview of the matter
According to Blockdata, many of the world’s largest banks have crypto exposure through direct and indirect investments in schemes associated with blockchain and digital currencies.
However, more conservative wealth managers remained concerned about the price volatility, including regulatory ambiguity clouding the industry.
Several Virginia state pension funds were advertised earlier this month, asking for approval for around $50 million investment for crypto derivatives and other digital tokens. They have become one of a few pension funds to declare this information publicly. Stockton said they would see in the future that greater liquidity and tighter spreads positively influence them, so there will be lighter volatility.
Katie Stockton added that there should be volatility. However, they can manage risks and navigate these short-term waves by recognizing key levels and connecting them with indicators. These indicators measure things such as momentum and other changes. During the COVID-19 pandemic, retail traders started to accelerate adoption at a faster rate. Also, from the beginning of 2020, the price of bitcoin started to increase approximately 500%. The University of Chicago recently conducted research that found that 14% of Americans traded crypto during one year, compared to 25% of people invested in stocks. Regardless of these adoption rates, Stockton views a long-term uptrend trend in crypto.