2022 Digital Asset Industry Outlook (4)
 
Peter Hans
Managing Director
Peter has over 20 years of experience leading teams through strategic initiatives resulting in goal-exceeding organic growth across multiple asset management and capital markets companies. Peter holds a Bachelor of Arts Degree in Psychology from Colby College and an MBA in Finance from Vanderbilt University.
 

Institutional capital will enter the market in a flurry.

 
Over the past year we’ve seen headlines regarding certain investors buying Bitcoin or ETH, and that’s been a nice narrative. Behind the scenes, the institutions that manage the overwhelming majority of global investable assets have gone from uninterested, to exploratory and most recently to a period of deeper due diligence. In 2022, we will start to see the culmination of that diligence as billions in new capital flow into a digital assets market that is still in its infancy.

Legacy terminology will die a fast death.

 
Terms like AltCoins, used to describe literally anything that isn’t Bitcoin, will fall by the wayside as more sophisticated capital enters the market. While I do believe that Bitcoin will continue to grow and increase in value vs the dollar, true institutional investors are not looking at this as a macro or beta play, but as an investment allocation to a growing technology that spans a broad swath of sectors and industries. This will lead to an adoption of terminology and taxonomies that fit within our existing investment landscape.

RIAs and Financial Advisors will be playing catch-up.

 

The majority of financial advisors have been slow to present their clients with a thoughtful digital assets exposure plan. While those at the wirehouses will likely continue to fall behind, advisors with more flexibility in their models will be adding active management strategies, including both liquid and venture capital, to their clients’ investment allocations. This will continue to put pressure on the banks, as well as the slow-moving RIA custodians.

The bull run in digital assets will not only persist through 2022, it will strengthen.

 

2022 will serve as further proof  that digital assets is part of a secular shift, not a short-term trade. As institutional capital enters the market in exponential fashion, the marginal buyer will far outpace the marginal seller.

Rayne Industry Predictions 

2022 Digital Asset Outlook- Institutional Participation- Peter Hans

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