CRYPTO is getting some serious attention. Earlier last week BlackRock reported that it believes some cryptocurrencies should have a place in portfolios, and now here comes Wellington Management Co. basically echoing the very same thing. These two prestigious firms together manage just a bit shy of $10 trillion, with Wellington throwing in $1 trillion. Big bucks. However, Wellington will NOT be buying direct exposure in Bitcoin and other cryptos but rather companies that make components for tracking and creating digital coins, like chipmakers. No matter. Over time, and with more and more regulation and liquidity, that will probably change. The door is opening and with firms like Wellington (and BlackRock) seriously looking at the crypto space their clients will demand more direct exposure. Another step forward.
(Bill Taylor/Managing Editor)
“Investment firm Wellington Management Co. has just thrown its $1 trillion hat into the cryptocurrency ring.
According to the Boston-based investment management company’s February report, the private and independent firm is officially considering including cryptocurrencies in some portfolios, as its systems were recently upgraded to enable trading in Bitcoin derivatives. Wellington has also started taking out positions in companies related to cryptocurrency.
According to Bloomberg, the team releasing the report includes equity research analyst Matthew Lipton and trading technologies principal Lee Saba. The report says:
Various Wellington teams are already positioning portfolios to take advantage of mining and blockchain implementations by, for example, investing in select chipmakers making components [for tracking and creating digital coins].
However, it is important to note that Wellington’s official stance is one of caution. The firm has made it clear that it is not buying direct exposures in Bitcoin and related currencies.
As of right now, Wellington’s analysts are conducting extensive research into digital coins and tokens, before producing further reports on their cryptocurrency plans…”