While critics are wasting their time trying to predict when the crypto bubble will burst, other more forward-thinking investors are making real money from the digital currency revolution. The latest institutional investor to join the spacecraft to the moon is Wellington Management Co., a Boston-based private independent investment management firm, founded 90 years ago.
Blockchain Money Steadily Going Mainstream
It’s no news that blockchain-based virtual currencies are gradually going mainstream. With the CME and CBOE futures and derivatives firms entering the space in late 2017, it was only a matter of time before others started looking deeper into the burgeoning financial instrument.
Wellington Management Co., a successful investment management firm boasting $1 trillion under management, is looking to include cryptocurrencies in some portfolios. As reported by Bloomberg, the firm’s team of experts which includes equity research analyst Matthew Lipton and trading technologies principal Lee Saba, disclosed the plans.
As part of the company’s preparations, the investment firm upgraded its systems to make trading in bitcoin derivatives a seamless process. It has also started investing in crypto-related businesses. An excerpt from the report read:
“Various Wellington teams are already positioning portfolios to take advantage of mining and blockchain implementations by, for example, investing in select chipmakers making components.”
Although the report failed to mention any specific stocks, it’s most likely that the firm has pumped money both into AMD and NVIDIA. These two stocks have shot up in recent times due to their close relationship with crypto mining and hardware. In investing in both company, Wellington signals further growth for both manufacturers.
Nvidia Corporation is based in California, and they are significant manufacturers of Graphics Processing Units (GPUs) used in cryptocurrency mining. Their primary competitor is Advanced Micro Devices, which is also based in Santa Clara, California and similarly manufactures chips for miners.
The exponential rise in the price of bitcoin and other cryptocurrencies has made crypto mining a very lucrative venture. This phenomenal craze has led to the increase in prices of GPUs and subsequently the chips manufactured by Nvidia and AMD.
Wellington is well aware of the volatile nature of cryptocurrencies and has hinted that its direct entry into the bitcoin and altcoin markets would be in a very “cautious” manner and it’s not going to happen now. However, the firm’s analysts are seriously studying the markets to know the best way forward.
It seems Wellington’s cautious stance is the best for now as the crypto market is yet to find its blistering form of 2017. The price of bitcoin is still fluttering between the $10K and $11K price region.