Cryptos have been going sideways for much of this year, dear readers, as I’m sure you all have seen. The past month or so has been a particularly interesting one for cryptocurrency news however.
As we’ve written here on the blog before, we’re in the second inning of cryptocurrencies. The mania leading up to December 2017 prices before a great cash out just in time for tax time here in the continental US was the end of inning one. Inning two is accumulation time for us savvy crypto investors, as we wait for institutional money to come in. And boy is it ever getting primed to come in.
Observe, if you please, the following.
Exhibit A: Billionaire Steve Cohen, current head of Point72, and inspiration for Axe on the excellent tv show Billions, has made an investment in Arianna Simpson’s Autonomous Partners. He is widely considered to be one of the leading investors on Wall Street, despite some unsavory events in his current and prior firm‘s history.
Exhibit B: BlackRock, one of the largest asset managers in the world overseeing some $6.3 trillion in assets, has set up a working group to explore cryptocurrencies. You might recall CEO Larry Fink’s remarks last fall regarding cryptos being mostly a speculative platform in Asia used for money laundering. My how a tune can change in nine months, no?
BlackRock is the latest to do so, following JPMorgan, Fidelity, Goldman, and CME among others are dipping their toes into crypto.
And side note on Goldman – a new CEO is taking over from Lloyd Blankfein come October (who has led the bank through the Global Financial Crisis of 2008, indeed for the past twelve years), current chief operating officer David Solomon, is a fan of cryptocurrencies.
Exhibit C: The SEC has announced neither Bitcoin or Ethereum are securities, immediately afterwhich a huge sigh of relief was exhaled by many. We should note however, that ICOs are, and the SEC has appointed a senior advisor for digital assets and innovation.
And lastly, Exhibit D: the CFA Institute, who writes an intense 3 level exam to train financial professionals, is adding cryptocurrencies and blockchain to its Level I and II curriculums for the first time ever in 2019.
All that to say the engine of inning two of the cryptocurrency world has already begun to rev up. Grab your popcorn, a cozy blanket, and keep accumulating on the dips, dear readers (25% below current level limit orders are your friends, friends!) – things are going to get even more interesting from here on out.