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"Inevitable" that pensions and endowments make crypto-play: Hedge Fund Exec


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Cryptocurrence could soon hit the white whale of the investment industry: institutional funds like pensions and endowments.

According to Paul Paul, investment manager at BlockTower Capital, an investment fund specializing in cryptocurrency, he told CNBC that he felt "inevitable" that these institutional investment funds would add cryptoassets to their wallets – sooner or later.

"I think it's inevitable from many angles," Paul said. "Even though they never believe in an asset class, they are smart enough to recognize the alpha opportunity."

"Endowments could pull the trigger at any time, they are on the fence," he added.

Paul, who was portfolio manager for the University of Chicago's strategic hedge fund prior to BlockTower's founding last year, explained that institutions are interested in investing in Bitcoin and others. crypto-currencies, but hesitate to be the first.

"We are in a bear market until new buyers are attracted," he said, adding that a school of the Ivy League making a Minor investment could have a knock-on effect on the institutional market. "Even a small amount is legitimate.If this happens, every family office says," Oh, Yale is in. That gives us excuse. ""

Before that, institutions will need to have access to reliable cryptoasset keepers. Assuming that the custodians extend their services and continue to build their reputation, Paul estimates that endowments could make their first investments in cryptocurrency within three to four months. Pensions and other institutional funds could then follow about six months after that.

Paul is not alone in this prediction. On Thursday, Pantera Capital issued a rare buy recommendation for Bitcoin, explaining that the fund is confident that institutions are finally preparing to make the leap into cryptoassets.

"I rarely have such a belief about timing.A wall of institutional currency will drive the markets much higher," writes Dan Morehead, founder of Pantera.

Meanwhile, Wall Street Fundstrat's strategy firm doubles its bet that the Bitcoin price will reach $ 25,000 by the end of 2018 on the assumption that markets will become bullish once the tax burden increases. will have evaporated.

Image from Shutterstock.

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