According to the founder of a well-respected hedge fund, the volatility of growth stocks in the face of increasing interest rates is temporarily stalling institutional investors’ planned dives into cryptocurrencies.
Many conventional institutions have already decided to invest in cryptocurrency, but most have been sluggish to do so.
According to Adam Levinson, a chief investment officer of Graticule Asset Management Asia, in an interview with Bloomberg Television.
Boon for Crypto Depends on Growth Stocks
“They don’t really want its initial entrance into the market to be a loss-making enterprise,” Levinson explained. “As a reason, I expect crypto to outperform growth equities through the middle of the year.
“Organisational allocation would’ve been delayed until global stock markets, particularly growth equity markets, stabilized.”
The trajectory of cryptocurrency market development and price hikes has been shaped significantly by institutional usage.
Although some participants claimed to be seeing significant buy-in from high-profile funds, others warn that the majority of heavyweight managers have yet to participate significantly.
“That whatever happened this year is that you’ve gotten to a point where the Fed, like other central banks, is being compelled to hike rates,” he explained.
“There’s also a change in the extraordinarily plentiful liquidity situation.” Crypto has a setback. Cryptocurrency is effectively traded as a risk asset in the same way as growth stocks are.”
Levinson’s company currently manages a $3 billion portfolio after he headed a team that split off from Fortress Investment Group LLC in 2015.
The Fortress Asia Macro Fund, which began trading in 2011, was Graticule’s predecessor. “We’ve been actively involved with cryptocurrency since 2013,” he said.