|With a combined market capitalization of over $425 billion, and many of the larger cryptocurencies trading in excess of $1 billion a day, we believe that highly risk-acceptant institutional investors are going to start to look at cryptocurrencies as a way to achieve returns uncorrelated with other assets.
We also believe that the institutionalization of cryptocurrency investment will have two major effects. First, the increased demand will likely cause an upwards trend in price – albeit with significant corrections. Second, it will likely lead to a less volatile market overall, as many institutional market participants frequently rebalance their portfolios. However, we believe volatility will still be extremely high.
The above is not an endorsement or investment recommendation to purchase cryptocurrencies.