The investment firm Cambridge Associates is a privately held investment company based in the United States. The firm provides investment portfolio management and advisory services to foundations, private clients, pensions, institutional investors and more. The US-based firm has pensions and endowments consultant with more than $385 billion in assets under advisement, has stated institutional should start getting involved in the crypto industry.
The company have said:
“In looking across the investment landscape, we see an industry that is developing, not faltering. Although the crypto industry remains in its infancy, we think institutional investors should begin exploring it.”
They say that no more than 1 percent is invested either directly into cryptos like Bitcoin and Ethereum into ICOs or STOs or otherwise indirectly into crypto/blockchain firms.
“The vast majority of institutional investors have little to no cryptoasset exposure. We expect traditional venture capital funds to increase their investments in cryptoassets going forward, meaning institutional investor exposure is also likely to rise.”
In a somewhat detailed statement, they explain that the different cryptocurrency investment strategies have potential, highlighting institutional investors aren’t able to invest more htan 20 percent in a non0qualifying investment. The firm says that “the industry is nascent and an allocation of more than 1% of a portfolio on a look-through basis does not appear prudent, even for those comfortable assuming the very high risks involved.”
The US-based firm was founded in 1973 by James Bailey and Hunter Lewis and now has a workforce of over 1,300 employees. They have changed their tune after the firm told institutional investors to stay away from cryptos at the height of the 2017 bull run.
In November 2017, Cambridge Associates said, “in our opinion, institutional investors are better served focusing on investing in companies seeking to profit from the development and adoption of blockchain technology and ‘fintech’ (financial technology) more broadly than holding cryptocurrencies directly.”
The company is now implicitly making recommendations to diverse from cryptos of no more than 1 percent of holdings after they made research into the crypto space.