One asset manager says the frenzy surrounds the Coinbase Global Inc. listing. on the Nasdaq this week may settle down, but fund managers will have to take into account the level of investor interest in bitcoin following the direct listing of the crypto exchange, an asset manager. real said.
“If you don’t talk about it, you’re really stuck in the past,” said Rick Lear, founder and managing partner of Lear Investment Management, in a phone interview on April 14. “There’s another currency that creates more problems out there, but it’s happening and you have to be ready to deal with it.”
For Lear, the Dallas-based company overseeing more than $ 500 million in assets, bitcoin could be worth between 1% and 3% of the portfolio. Though it’s a bet he likes to show through GreyScale Bitcoin Trust
Lear said Coinbase live listing April 14 opens the door for “loose” exposure to bitcoin.
Most of his company’s investors, including high net worth individuals and institutions, are asking about how they might be exposed to bitcoin, he said. That includes an investment director at a multi-billion dollar pension fund that is not allotted to cryptocurrencies, whom Lear said he spoke to only this week as it was recently in the field of chat. top of the pension fund.
But buying bitcoin is only for investors who can “accept volatility,” Lear said. While an individual can open an account at Coinbase, the largest US crypto exchange, he said it’s not easy to get subsidies into a Coinbase account. And although it is now possible to invest in Coinbase shares, Lear considers the company to be Market value on the day it rose too high to immediately jump in.
31% higher than the reference price during its Nasdaq launch, valuing the company at $ 85.8 billion by the end of Wednesday’s trading session. The company’s shares, traded under the COIN, fell more than 1% in late afternoon trading on Thursday.
Dow Jones industrial average
to close at a record above 34,000 on Thursday, while the S&P 500 index
hit its own all-time record high and the Nasdaq Composite Index
topped 14,000 for the first time since February, all Get a boost from an improving economy.
Lear hopes other blockchain companies will also appear on the “investor radar screen” and says that his company will track Coinbase stock as a potential investment opportunity. But now, amid the excitement, many people may be looking to buy Coinbase regardless of the price tag, creating a lot of “buzz” around its pricing, according to Lear.
Richard Rosenblum, co-founder of crypto trading company GSR, said the bitcoin industry stands out for its “retail-oriented”, meaning that individuals rather than institutions have been leading the way in establishing the school. But banks and financial institutions are increasingly taking on the pitch and will help the industry mature, he said in a phone interview on April 14. Goldman Sachs Group and Morgan Stanley as recent examples.
Rosenblum, who started his career at Goldman in the commodity business and worked at two hedge funds before co-founding GSR in 2013, said: “We’re at the moment, it’s not just is a fake head ”. into crypto and strengthening its infrastructure, “it will be better for everyone,” he said.
While Lear sees bitcoin as an asset worth the attention of investorsHe says he doesn’t really see it as a real currency at the moment.
“Even if it’s a currency, and you like it, and you think it’s going to go up in price, why are you spending something that you think will go up in price?” Lear asked. “It’s still really hard to use it online.”
jumped to over $ 64,000 on April 14, the day Coinbase went public, before closing around $ 62,000, according to CoinDesk prices. That compares to a record close of $ 63,196 on April 13, with trading pushing above that level on Thursday afternoon.