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  • Trends with Benefits

    Trends with Benefits #47: [Crypto Series 2] - Bitcoin’s Growing Popularity with Institutions

    Ed Lopez, Head of ETF Product
    March 09, 2021
     

    I continue our special Bitcoin podcast series by welcoming Dan Tapiero, Manager Partner and CEO of 10T Holdings and Co-founder of Gold Bullion International, to discuss the investment case for Bitcoin when it comes to institutions.


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    We begin our conversation by discussing Dan’s background and what led him down the road to Bitcoin. Going back six to seven years, Dan admits to not being overly enthusiastic about Bitcoin but discusses how the Satoshi Whitepaper helped spark an epiphany, leading to his realization of the magnitude of the technology and making him qualify the ingenuity as being equivalent to that of the combustible engine or electricity.

    Many institutional investors are rethinking the traditional 60/40 allocation and seeking out alternative sources of alpha. Dan highlights Bitcoin’s compelling performance profile and what it would look like in a 60/40 portfolio, if one were to look back over the last decade. Dan also explains which factors he believes have led to institutions becoming more comfortable with Bitcoin, as well as what onboarding Bitcoin at these institutions entails. We also discussed the difference between gold and crypto and why they will always remain two separate asset classes, PayPal’s role in increasing accessibility to digital assets and finally, the opportunity Dan sees for the government and Bitcoin to work together—particularly when it comes to creating more jobs.

    Trend or Fad

    Listen for Dan’s take on Inflation, Dogecoin and Peloton.

    Follow Ed Lopez @ThatEdLopez on Twitter and Dan @DTAPCAP on Twitter.

    You can listen and subscribe to this podcast on Apple PodcastsSpotifyStitcherSoundCloud, and YouTube.

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    Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. The value of cryptocurrency may be derived from the continued willingness of market participants to exchange fiat currency for cryptocurrency, which may result in the potential for permanent and total loss of value of a particular cryptocurrency should the market for that cryptocurrency disappear. Cryptocurrencies are not covered by either FDIC or SIPC insurance. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of cryptocurrency.

    Investing in cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.

    Investors should conduct extensive research into the legitimacy of each individual cryptocurrency, including its platform, before investing. The features, functions, characteristics, operation, use and other properties of the specific cryptocurrency may be complex, technical, or difficult to understand or evaluate. The cryptocurrency may be vulnerable to attacks on the security, integrity or operation, including attacks using computing power sufficient to overwhelm the normal operation of the cryptocurrency’s blockchain or other underlying technology. Some cryptocurrency transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.

    • Investors must have the financial ability, sophistication and willingness to bear the risks of an investment and a potential total loss of their entire investment in cryptocurrency.
    • An investment in cryptocurrency is not suitable or desirable for all investors.
    • Cryptocurrency has limited operating history or performance.
    • Fees and expenses associated with a cryptocurrency investment may be substantial.

    There may be risks posed by the lack of regulation for cryptocurrencies and any future regulatory developments could affect the viability and expansion of the use of cryptocurrencies. Investors should conduct extensive research before investing in cryptocurrencies.

    Information provided by Van Eck is not intended to be, nor should it be construed as financial, tax or legal advice. It is not a recommendation to buy or sell an interest in cryptocurrencies.

     

    Van Eck Associates Corporation

  • Authored by

    Ed Lopez
    Head of ETF Product

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