“Digital Assets are here to stay. Enabled by distributed ledger technologies, digital assets including cryptocurrencies, stablecoins as well as tokenized form of other assets will be an important part of the financial ecosystem.” According to a recent report by US bank BNY Mellon, 72% of asset managers surveyed are planning to develop digital assets over the next three years.
Hedge funds are leading the way in investing in digital assets, with the total AuM of Crypto Hedge Funds almost doubling in 2020 to reach US$3.8 billion (vs US$2 billion in 2019), as reported by the Alternative Investment Management Association (AIMA), PWC and Elwood Asset managers. I A growing number of traditional hedge funds are also beginning to show increased interest: 21% of traditional hedge fund managers are investing in digital assets, with another 26% planning to invest according to the same report.
On the other hand, these same traditional hedge funds are concerned about key barriers surrounding crypto investments. Among the obstacles are regulatory uncertainty, lack of infrastructure and price volatility. Client or reputational risk are also prominent concerns, given the limited track record and lack of fundamentals around digital assets. A myriad of laws, regulations and due diligence needs to be adhered to in order to ensure the assets of end-users are safe. It is very difficult, for example, to construct a fundamental price analysis around cryptocurrencies.
In order to help educate institutional investors on these issues and more, the forthcoming Coinscrum Institutional Web Summit will take place on 21st September 2021. The gathering will assemble a gathering of key industry leaders to debate the biggest talking points in crypto: maturation, governance and regulation, latest challenges and opportunities, and infrastructure and technology developments. Participants will be able to hear from exchange operators, leading liquidity providers and regulatory experts on the following topics:
- How the cryptoasset industry has matured on the issue of liquidity, and how it compares to traditional finance
- How market infrastructure support services, such as custody, lending, clearing and prime brokerage, have opened up broader market access
- The latest regulatory trends in crypto, and what companies need to be doing to stay compliant and one step ahead of the game
- The upcoming DeFi trends for 2021/22
Join us to discuss the four central issues of institutional crypto trading: liquidity, market infrastructure, regulation, and DeFi at the Coinscrum Institutional Web Summit on 21st September 2021, as a highly curated, free to attend, invitation-only online event built on the strengths of the Coinscrum community.