Fund managers believe 2018 is just a blip in the crypto journey
Panellists at the Bloomberg Crypto Summit held in London last week concluded that the “future of cryptocurrencies will entail greater regulation, more involvement by large institutions, lower volatility and greater integration with traditional assets.”
However, most significantly, none of the speakers believe that what has happened in 2018 signals the end of cryptocurrencies; instead it is, as James Bevan, chief investment manager at CCLA, a major UK fund manager said, merely “a bump in the road.” He also said that he didn’t see the drop in value of cryptocurrencies as “an existential crisis,” at all, and also compared crypto to traditional finance, stating that “institutional investors have had plenty of bumps in the road in conventional currencies and transaction systems.” CCLA describes itself as “one of the UK’s largest fund managers” and claims to have £7,842 million (just slightly short of $10 trillion) in assets under management.
Other speakers suggested that two areas of growth for the industry would come from low-volatility tokens, or stablecoins as they are more popularly known, and so-called security tokens; digital contracts that represent ownership of assets such as real estate or stocks.
Lewis Fellas, chief investment officer at crypto fund Bletchley Park Asset Management said that stablecoins had plenty of room for expansion and said, “I think we’re just getting started.”
Ryan Radloff, chief executive officer of CoinShares, talked about the possible effects of regulatory differences between jurisdictions, saying that if different jurisdictions adhere to lower standards than others, especially if that’s smaller countries that have been proactively promoting themselves as a destination for crypto businesses this will be a challenge.
Marieke Flament, global chief marketing officer at Circle Internet Financial Ltd discussed the benefits of getting the crypto regulation wheels in motion so that the industry can learn from mistakes: “It’s good to see some larger countries step through and show the route, but I would not discredit the work that others are doing, because if you have no one starting then everyone is waiting.”