The past few months have welcomed several notable institutions and investors into the digital asset community. From Paul Tudor Jones to Square, PayPal and JPMorgan, the next wave of acceptance is reaching top tier asset managers.
This week, both Guggenheim and AllianceBernstein released statements declaring digital assets a legitimate asset class, with Guggenheim announcing a possible allocation of up to 10% of their $5.3 billion Macro Opportunities Fund into the Grayscale Bitcoin Trust (GBTC).
As one of the largest asset managers on Wall Street, Guggenheim is taking a leading role in recognizing the true use cases and profitability behind a decentralized financial infrastructure, and their impending asset allocation to GBTC is validation that this asset class is not going anywhere.
As the world becomes increasingly digitized and the pace of innovation is more cutthroat than ever, Guggenheim’s validation of Bitcoin is indicative of their foresight into the future of asset management. With their vision of a digital asset-backed financial future, Guggenheim is living up to their fiduciary commitment to drive future returns for their clients by allocating up to $530mm into the asset class of the future.
Alongside Guggenheim in their recognition of cryptocurrencies as an asset class is Wall Street giant AllianceBerstein. Earlier this week, Inigo Fraser Jenkins, Co-Head of Bernstein Research’s Portfolio Strategy team released a statement claiming that digital assets “do have a place in asset allocation.”
Coming back on his 2018 remarks that digital assets do not present a convincing use case because their historic volatility ruled them out as a means of transaction, Fraser Jenkins’ recent statement is credited to Bitcoin’s lower price volatility and therefore strengthened foundation as a store of value asset. On Bitcoin’s viability as a store of value, Fraser Jenkins told CoinDesk that Bitcoin’s downward trend of price volatility “makes it more attractive both as a store of value and as a medium of exchange.”
There is no denying that Bitcoin is earning the respect of Wall Street. Massive allocations from MicroStrategy, Square, and legendary investors like Paul Tudor Jones along with crypto integrations from PayPal and JPMorgan are delivering Bitcoin on a gold platter to the global investment community. The momentum from the past few months has made one thing clear: Bitcoin is not going anywhere, and as Bitcoin is here to stay, regulation will soon follow to project the world into a future of universal digital asset adoption.
By Liam McDonald