All financial assets undergo price fluctuations. In the case of cryptocurrencies, this fact is even more constant due to a series of factors.
Among them, investor speculation and the possible lack of some regulations that can bring more security to institutional investors, accustomed to traditional market rules.
The fact is that large companies already invest and own large shares of the cryptoactive market. The Cointelegraph published that in Brazil, according to a Bloomberg survey, banks are already the largest investors in Hahsdex’s cryptocurrency ETF, HASH11.
According to company data, the positions in HASH11 of Banco Credit Suisse (CSHG Asset Management) and Banco BTG Pactual add up to around R$ 30 million, with Credit Suisse being the second largest investor in the ETF with 471,500 units and the BTG the third with a position of 211.5 thousand.
In other words, banks that were once great enemies of the Bitcoin (BTC) and cryptocurrencies market and for years claimed that cryptoactives were bubbles, squared rat poison, objects of organized crime, pyramid, ponzi scheme and many other offenses, now they are ‘arm in arm’ with the crypto universe.
Bitcoin (BTC) is still king among cyptocurrencies. Just to give you an idea, the largest cryptocurrency by market value was costing at the time of writing this article, R$238,147.21, with a market capitalization of R$4,477,700,452,425.
These numbers make it impossible for Bitcoin and other cryptoactives to go unnoticed in the eyes of the market.
By the way, the fame of cryptoactives has reached the ears and the daily lives of the wealthiest families, as published by Valor, which states that upon demand from investors and wealth managers, families are studying the topic and there are already those who include this class of assets in portfolio allocation.
Young people are the main actors in the search for cryptoactives, according to the newspaper, which echoed a recent mapping released by the CFA Institute Research Foundation, on the potential impact of cryptoactives on investors’ portfolios.
According to the study, Matt Hougan and David Lawant compiled a test by Bitwise Asset Management, which assigned different, small percentages of Bitcoin (up to 5%) to a traditional portfolio (which was 60% equity, 40% fixed income ).
According to the newspaper, the result is that there is a significant improvement in the portfolio’s profitability with small increases, while the risk increased little, taking into account the Sharpe index, which makes this type of weighting.
Luiz Pacheco, a partner at Brainvest, told Valor that the recommendation to investors has been to allocate up to 2.5% of the portfolio in cryptoactives. “As volatility is high, you can’t invest much more than that.”
He says that segments related to the world of cryptoactives such as the “blockchain” (technology behind bitcoin) are evaluated as other strategies before composing an investment portfolio.
A concern of managers is the fact that transactions are decentralized, which raises an alert about the custody of cryptoactives, unlike what happens in a stock fund in Brazil, where custody is at B3.
The paper cites cryptocurrency broker Coinbase, which made an IPO on Nasdaq, and which is one of the companies that quickly developed to provide this type of service.
Fernando Beyruti, from Itaú, the bank’s CEO in the United States and responsible for international private banking, told Valor that he has been giving investors access to crypto-assets through index funds in Brazil and abroad.
Annalisa Blando, founder and CEO of financial planning company ParMais, said that after joining the Bitcoin Market, she identified investors’ great curiosity for cryptoactives.
The change in mentality about cryptoactives is reaching all spheres of society and the result is the expansion of services aimed at the sector.
An example of this was published by Cointelegraph. The BrMalls shopping mall network, present in several cities across the country, will install 15 cryptocurrency ATMs by the end of August.
And the company that owns the equipment guarantees that by the end of the year there will be 50 machines spread across the country, to meet the demand.