The crypto industry is going mainstream and coming to be increasingly accepted by the bastions of old money - institutional investors, who are taking a sheen to new money. Though the crypto Big Bang started with just one bitcoin, we have seen crypto evolve from Coins to Tokens to ICOs and now finally Security Tokens. Crypto liberated many stakeholders in the economy such as citizens, entrepreneurs, innovators and have a new paradigm where rules were turned over their hold to give a level playing field to new comers, so to speak.
This invited a denial followed by dazed reactions from the incumbents for some years, before they have finally come to accept that crypto is not a fad, but an inevitable universal upgrade. Even though we don’t see the same brouhaha as last year, from ICOs raising billions of dollars in 2017 , the truth is some ICOs have rounded up astounding figures in private rounds in 2018, exclusively from institutional capital. EOS and Telegram ICOs which concluded their fundraising in 2018 are testimony to the gigantic institutional appetite for the relevant crypto projects. Crypto is going Institutional in more ways than one: Traditional private equity and venture capital funds are obtaining mandates from their existing LPs to invest in crypto. Over 350 new crypto funds have come into existence since mid 2017, with a focus on investing in purely crypto assets.
Some of these are backed by marquee investors such as Andreessen Horowitz, Ari Paul. Endowments taking a leap into crypto: Yale University’s $29 billion endowment has invested in 2 crypto funds, the first behemoth pension fund to take a leap into crypto, paving way for other large institutional investors. After all, crypto as an asset class can’t be beaten on the giddying returns generated for early investors. Laura Shin penned an article featuring the 18000 % returns that are being chased by dozens of these just born crypto funds. Endowment funds of Harvard, Stanford, MIT, Dartmouth College, and the University of North Carolina all followed suit and have each invested in at least one cryptocurrency fund through their respective endowments. These funds are buying into both crypto currencies, as well as equities in crypto firms.
Traditional financial institutions have all woken up to to the potential of crypto, and are in a frenzy to introduce crypto brokerage products for their institutional and retail clients. JP Morgan, Goldman Sachs and TD Ameritrade have all forayed into brokerage services dealing in pure crypto products, Pure play crypto companies are blurring the borders, and getting into the well marked and protected territories of institutional players: Coinbase has obtained approvals to invest in regulated securities firms, which in turn will give it license to play in products that come into SEC purview. Circle has invested in a crowdfunding for seed equity platform. Binance , the most successful crypto exchange, is exploring licenses in select jurisdictions to extend its game from cryptocurrencies to securities. That the successful crypto players are now ready to play the game of the erstwhile incumbents is both a threat and an opportunity for the incumbents.
Crypto has now attracted Institutional level diligence and scrutiny, to pave way for institutional money to come in. We are hosting the world’s first ever institutional asset manager summit for crypto in Switzerland, home to both old money and new. The Swiss Crypto Asset Summit 2019 will be held on 19-20 January ahead of the World Economic Forum 2019, which has already witnessed crypto’s meteoric rise and heralded it as the trend for the next decade. World Economic Forum 2017 is when crypto went mainstream, where country premieres and several global leaders went home determined to embrace blockchain. WEF2019 will usher in the mass movement for security tokens and institutional capital embracing crypto. Ladies and Gentlemen, it is our privilege to precipitate that movement on the precipitous cliffs of Alps.
We welcome the most influential institutional asset managers to debate what the opportunities are, and what is lacking in the crypto industry today before crypto becomes integrated in the bastions of old finance, changing the game for everyone for once and all.
Set in the magestic setting of the Kulm Resort in the Engadine, and coinciding with the St Moritz Gourmet Festival, it promises to be a memorable experience to take in sensory as well as cerebral stimulation.
Cryptocurrencies as an asset class have come of age, to earn the validation of institutional money, which is a long term bet and not a short term speculative frenzy.
The Himalaya Resource Library is an extensive collection of articles and videos based on Blockchain, Cryptography, Security Token Offerings and various other topics related to blockchain. The white paper links are mentioned as well along with the frequrently asked questions.Resource Library