Elwood Asset Management Firm to Offer Institutional Clients Crypto Products
Elwood Asset Management, a U.K.-based firm that claims to combine a broad knowledge in blockchain technologies and finance to formulate breakthrough investments for global investors, has announced it’s looking to unveil a range of cryptocurrency-based products that would attract institutional big whales to the digital assets ecosystem, reports Bloomberg March 12, 2019.
Setting the Stage for Institutional Investors
After successfully co-launching a blockchain exchange traded fund (ETF) named the Invesco Elwood Global Blockchain UCITS ETF (BCHN: LN), with Invesco Ltd., a U.S.-based independent investment management company, Elwood Asset Management has reportedly hinted its now looking to unveil innovative products that would potentially bring more institutional investors into the world of digital assets.
Owned by Alan Howard, a highly-reputed British hedge fund manager and co-founder of Brevan Howard Asset Management LLP, Elwood Asset Management has said that the regulated products it’s looking to introduce, will be tied to a vast array of crypto-assets.
The firm has also revealed that it plans to develop investment portfolios that will be based on digital assets trading and it may offer institutional clients exposure to non-security cryptocurrencies like bitcoin (BTC) and ether (ETH) shortly.
Regulatory Uncertainty Still Scares Institutional Investors
Though several institutional investors like Fidelity Investments, Intercontinental Exchange (ICE), Yale University and others, have already joined the cryptocurrency bandwagon in spite of regulatory uncertainty, the CEO of Elwood Asset Management, Bin Ren, has reported that many institutional players are still on the fence due incertitude.
In his words:
“The only way for institutions to get real exposure to digital assets has been to buy bitcoin; however, many are still reluctant or unable to buy the flagship crypto – and for a good reason. An ETF provides investors with a highly liquid and regulated platform to gain crypto exposure.”
While the global crypto community is still waiting anxiously for U.S. financial regulators to greenlight one of the numerous cryptocurrency ETF filings, it’s worth noting that the cryptoverse is making slow but steady progress in these regards as more crypto exchanges and Bitcoin-linked businesses now conduct stringent know-your-customer (KYC) and anti-money laundering (AML) checks on prospective clients.
In related news, on March 13, 2019, BTCManager informed that U.S. Securities and Exchange chairman, Jay Clayton, has confirmed that many digital assets currently on the market are not securities, a strong indication that it’s just a matter of time before the precarious dark cloud of regulations dissolves.