The founder of crypto investment firm Morgan Creek Digital says a coming boom of institutional investments in Bitcoin and crypto bull will trigger a bull run unlike anything the market has ever seen.
In a new post on the movements of incumbent asset managers, Anthony Pompliano outlines why he believes crypto and blockchain investment opportunities will be “one of the fastest growing sectors in the alternative asset management space in the next 10 years.”
According to Pompliano, crypto is poised to become impossible for alternative asset managers to ignore.
“As these firms begin to enter the space, many of them will choose to either (1) spend ungodly amounts of money to hire talented and experienced crypto investors or (2) pay up to acquire asset management firms that specialize in blockchain and crypto. While the strategy is easy to identify, there may be a number of complexities.
These issues will eventually be worked out though, and I anticipate the macro-trend of consolidation in alternative asset management will spill over to include crypto asset managers. This is because every alternative manager will be forced to manage funds in the ‘crypto industry’ in the next decade. Whether it comes under their purview through Bitcoin, the public crypto market, venture capital, or tokenized assets, the writing is on the wall at this point.”
Pompliano says there will be stragglers, and he expects the more opportunistic and open-minded managers to reap the most rewards.
“Some firms will drag their feet and wait to see how the industry plays out. Others will be opportunistic and gain a significant advantage by having a head start. If you thought 2017’s bull market was big, just wait till the trillions of dollars allocated to alternative assets begin to roll in.
The next bull market will be bigger than anything we have ever seen before.”
In February, Morgan Creek Digital announced it has successfully started a new fund that’s raised $40 million from two public pensions, a university endowment, an insurance company, a hospital system and a private foundation.
Morgan Creek Digital’s fund will invest in companies focused on building blockchain solutions and hold a small percentage in cryptocurrencies like Bitcoin.