Major Investment Advisor Tells Institutional Investors to Look Into Crypto

Siamak Masnavi

On Monday (February 18th), according to Bloomberg, Boston-based Cambridge Associates, a Registered Investment Advisor (RIA) in 53 states with roughly $389 billion in assets under advisement (approximately $30 billion of which is assets under management), reportedly recommended to its institutional clients to consider investing in crypto.

Cambridge Associates, which was founded by Harvard College roommates Hunter Lewis and James Bailey in 1973, provides advisory and portfolio management services to institutional investors in the following categories:

  • "colleges, universities, foundations, health care organizations, and other not-for-profit organizations";
  • "hospitals and healthcare-related institutions";
  • pension funds; 
  • "insurance companies and sovereign wealth funds"; and
  • private clients (high net worth individuals and large-scale family offices).

Per the Bloomberg report, the analysts at Cambridge Associates sent a note to their clients on Monday, which said:

“Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term. Though these investments entail a high degree of risk, some may very well upend the digital world.’’

However, it also advised them to take “a considerable amount of time learning about the space" (such as researching different ways of investing in crypto) before jumping in. 

They added:

“The dramatic declines that swept across the crypto space raised questions about the future of these assets and the blockchain technology that underpins them. Yet, in looking across the investment landscape, we see an industry that is developing, not faltering.’’

On 5 October 2018, CNBC reported that David Swensen, the Chief Investment Officer of Yale University's $29.4 billion endowment, had "invested in two venture funds dedicated to cryptocurrency, according to people familiar with the matter." These two funds were "Andreessen Horowitz's inaugural $300 million crypto fund" and "Paradigm, a new blockchain and cryptocurrency-focused fund started by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang."

Featured Image Courtesy of Cambridge Associates