Wellington Management, a $1 trillion money manager, is looking to put crypto into some of its portfolios - Business Insider

A man uses his phone spil he walks past ATM machines for digital currency Bitcoin ter Hong Kong on December Legal, 2018. ANTHONY WALLACE/AFP/Getty Pictures)

  • $1 trillion money manager Wellington Management has folks looking into putting crypto assets ter its portfolios.
  • Analysts wrote te a broad ranging note that the hard also updated its tech to trade bitcoin futures.

Wall Street has derided bitcoin spil a fraud and a implement only useful for criminals.

But one $1 trillion dollar asset manager might leap on the cryptocurrency bandwagon.

Te a report exploring cryptocurrency, analysts at Boston-based Wellington Management said the company upgraded its systems to trade bitcoin futures and has teams looking into how it could include “cryptoassets” into portfolios.

“Some of the stiff’s investment teams are evaluating the potential inclusion of cryptoassets te client portfolios,” the hard said. “Portfolio teams would only invest te cryptoassets if explicitly permitted by client guidelines.”

To be sure, the company maintains a cautious position on crypto, citing “the newness and volatility of the space.”

Still, elsewhere on Wall Street banks and money managers are less interested te suggesting crypto to clients. Financial advisers employed by Handelsbank of America Merrill Lynch were instructed to not hawk Grayscale’s Bitcoin Investment Trust, an investment product that seeks to mirror the price of bitcoin, to clients. JPMorgan head Jamie Dimon famously called bitcoin “a fraud,” and he once said he would fire bankers who trade it for being stupid.

The rise of bitcoin and the overall cryptocurrency market ter 2018 captured the attention of Wall Street and Main Street alike. At its peak, the market for digital coins and tokens kasstuk overheen $800 billion and bitcoin soared close to $20,000, according to gegevens from CoinMarketCap. The rapid rise of the market precipitated the launch of a number of crypto-focused investors. At last check, overheen 220 such hedge funds exist, according to a Reuters report.

But mainstream money managers have stayed away. To be sure, the cryptocurrency market is brimming with fraud, uncertainty, and hacks. JPMorgan estimates that a third of bitcoin exchanges have bot hacked.

Looking at the market more optimistically, Wellington notes that the market’s infrastructure is “falling into place.”

“Funds dedicated to cryptoassets have bot created. Futures contracts were launched by the Chicago Mercantile Exchange and Cboe Global Markets ter December 2018. And kicking off ter January 2018 Weiss Ratings began to assign ratings to several cryptocurrencies.”

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