Institutions do a 180-degree turn on the outlook of cryptocurrencies


Four of the biggest names in wealth management and banking may have finally come to the realisation that cryptocurrencies could just be a winning bet after all.

Prior to this year, CEOs such as Jamie Dimon (JPMorgan Chase) and Larry Fink (BlackRock) described Bitcoin as worthless, lacking intrinsic value and “an index of money laundering”. Today they seem to have taken a different approach altogether.

A few months ago, JPMorgan Chase started hiring software engineers to focus on ‘collateral blockchain tokenisation’. And BlackRock – the world’s largest investment company – began to see the need for cryptocurrencies as an alternative transfer of wealth outside of the fiat system following the Russia-Ukraine conflict. Blackrock also owns a 14.56% stake in MicroStrategy, which owns more than 125 000 Bitcoin (BTC).

And it didn’t stop there.

Earlier this year, Goldman Sachs became the first major US bank to trade crypto over the counter, and even Bridgewater Associates, the world’s largest hedge fund, reportedly plans to back an external crypto fund.

Could the days of institutions scoffing at cryptocurrencies like BTC be coming to an end?

“I think so,” says Brett Hope Robertson, head of investments at crypto investment platform Revix.

“Institutional adoption is taking place at an exponential rate as the market and its participants become more sophisticated. In time, I expect this will lead to a less volatile crypto market.

“Funnily enough, the institutional adoption is ultimately coming from clients. So while we are seeing some investment in cryptocurrencies and the development of digital asset functionalities, this is what these institutions’ clients are demanding. Despite the views made by senior institutional managers over the years, we are starting to see a shift in how these managers view the use cases, and therefore the power, of decentralised cryptocurrencies.”

The recent sanctions imposed on Russia by Western countries are one of the key drivers of this changing view on cryptocurrencies.

A fundamental design of cryptos and decentralised finance (DeFi) is the ability to bypass gatekeepers such as central banks. Cryptos are intended to be ‘censorship-resistant’, meaning no one can prevent or disrupt a payment between two willing parties.

In a letter to BlackRock shareholders, Fink suggested a global digital payment system, “thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption”. Such a system could also help bring down the costs of cross-border payments.

Hope Robertson argues that we are fast entering a world where multiple payment systems, both traditional and crypto-based, will compete and overlap, creating vast new opportunities to accumulate wealth and make payments.

“The great dream of financial inclusion and extending financial services to the masses has not been achieved under the traditional financial system,” he says.

“In the crypto space, the technology is already in place. Areas such as Smart Contract, DeFi, Payment tokens and Blue Chip cryptocurrencies are laying the groundwork for a completely decentralised financial system – an alternative way to store and transfer value around the world at a fraction of the cost.”

In light of the Russia-Ukraine situation, institutions are finally waking up to the power of such a system, and the crypto market has realised this.

Over the last 30 days, Revix has seen impressive returns in many of the cryptocurrency sectors.

Source: Revix

The Revix Smart Contract (17.94%), Top 10 (12.22%), DeFi (9.67%) and Payments bundles (7.3%) have all returned impressive 30-day returns that help solidify the views of many institutions that the cryptocurrency market may just be here to stay after all.

How to participate in the crypto revolution

Revix offers a number of ways to participate in the crypto revolution.

The Top 10 Bundle is like the JSE Top 40 or S&P 500 for crypto and provides equally weighted exposure to the top 10 cryptocurrencies making up more than 85% of the crypto market. The most exciting stories in the crypto market will be found in the top 10, and as new cryptocurrencies gain in size and importance, they will likely assume their rightful place in the Top 10 Bundle. The bundle is automatically rebalanced monthly to make sure the weightings remain equal.

The Payment Bundle provides equally weighted exposure to the top five payment-focused cryptocurrencies looking to make payments cheaper, faster and more global. These cryptos include the likes of Bitcoin, Ripple, Bitcoin Cash, Stellar and Litecoin.

The DeFi Bundle offers market capitalisation weighted exposure to the top 10 decentralised finance-focused cryptocurrencies that are revolutionising the financial system by using smart contracts and blockchain technology. These cryptos include the likes of Uniswap, Thorchain, Aave and Curve.

The Smart Contract Bundle provides equally weighted exposure to the top five smart contract-focused cryptocurrencies, like Ethereum, EOS or Tron, that enable developers to build applications on top of their blockchains, similar to how Apple builds apps on top of its OS operating system.

About Revix

Revix brings simplicity, trust and excellent customer service to investing in cryptocurrencies. Its easy-to-use online platform enables you to securely own the world’s top cryptocurrencies in just a few clicks. Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.

Remember, cryptocurrencies are high-risk investments. You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

This article is intended for informational purposes only. The views expressed are opinions, not facts, and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any cryptocurrency.

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