Wealth managers the world over are being overwhelmed with requests about Bitcoin, as reported by Bloomberg. The astonishing increase in value the cryptocurrency has experienced has led to a run on the investment, with an enormous number of investors looking to gain positions in this new asset class.
The mainstream adoption of Bitcoin, which had been widely considered a black market currency pre-2017, has seen remarkable growth in recent times. The astronomical price increases have given rise to new investment vehicles like Bitcoin futures, as seen on the Chicago Mercantile Exchange, and others.
The general feeling
There’s no denying that the majority of wealth managers have reservations regarding the risk associated with an emerging, technology-backed class of asset. But the bulk of them have no problem with allowing their clients to move into the Bitcoin market. What you’ll find is that a large proportion of wealth managers recommend removing initial investment as early as possible, so that you are only leaving your gains in the volatile market.
The advice of Kevin Grimes, who is the president of Grimes and Co., is that the best approach is to sell what you need to in order to retrieve your initial investment as early as possible but to continue holding some position in the biggest cryptocurrency. His words were that “laughing off” Bitcoin is easy to do, but people who do so could end up regretting it. Of course, Bitcoin could end up being a “scam” that ultimately amounts to nothing, but he insists there’s the possibility it could grow to heights “no one has conceived of”.
Wherever you stand on the issue, there’s no escaping the fact that Bitcoin is making its move into the mainstream. And this, in itself, is a validation of the potential Bitcoin has to achieve substantial price increases.