What’s going on in the Crypto Sphere?

By Sune Hojgaard Sorensen, Managing Director

Posted June 9, 2021

CRYPTO TRENDS:

In this week’s edition Sune Hojgaard Sorensen, our Managing Director, takes a look at what’s been happening in the fast-evolving Crypto Sphere recently.

The crypto market has experienced tremendous success but has undergone price corrections throughout the last decade, we have seen this again in recent months. Innovation at the cutting edge of technology in a highly regulated space can be a rollercoaster ride for all involved – entrepreneurs, investors and regulators.

Asia, Europe and the US will look to seize opportunities related to the development and deployment of the innovation in the crypto sphere for the sake of demonstrating technological competence in the 21st century. In Europe Bitcoin and Ethereum ETPs have appeared on the Euronext Paris stock exchange.

Modernization offers transparent communication systems with electromagnetic waves, towers, and cords that offer portals for transcending borders, but the world’s two largest economies are not going to let that happen without oversight and some measures of control. The US-China strategic competition will influence crypto policies for both countries. The Chinese have pushed cryptocurrency businesses out. Ransomware attacks demanding bitcoin have been compared to 9/11 by FBI Director Christopher Wray. The Biden administration has announced a memorandum on establishing the fight against corruption as a national security interest. The US Department of Justice has seized $2.3 million in bitcoin from Colonial Pipeline’s hackers DarkSide. Technology is a tool – like a hammer it can be used to build a house or to tear it down. With clear rules of the road the innovation unfolding in the crypto sphere can be the springboard for change to a better financial system.

Is it possible to ignore the bumps on crypto’s long and winding road? Ignoring risks is a losing formular. However, the members of the crypto community – entrepreneurs and investors – who are prepared and committed to working with regulators to develop a pragmatic regulatory framework will reap the value created by this promising innovation.

Circle Internet Financial, creator of USD Coin, has obtained $440 million in financing and the company is supposedly considering a SPAC deal. Marathon Digital Holdings has adopted and implemented Bitcoin Core version 0.21.1 for its mining pool that will improve privacy, scalability, and future enhancements. One of the most popular cryptocurrencies, Cardano is building interoperability across the crypto space. Makara, a SEC-registered cryptocurrency robo-advisor, was launched in the App Store. Crypto’s future is promising so investors should embrace the message of “Hold Me Tight” by The Beatles and take a long-term view – forget about chasing prices and be a part of building value.

We see an allocation to Crypto as being akin to investing in Venture Capital – you should not allocate your whole portfolio to it, but a small allocation can make a big difference as the illustration below showcases.

Source: https://www.onrampinvest.com/blog

Recommended content from our explorations this week:

A final thought…

Sune Hojgaard Sorensen, Managing Director

Sune brings 20 years of business and professional investment experiences across asset classes, investor segments and geographical locations to his work with Strategic Funds. Sune is the founder of an independent macro research company that provides distinct insights on global trends and related investment risks and opportunities. He is a partner with a US based think tank focused on research and advise for leaders in both the public and private sectors. He sits on the advisory board of a Swiss wealth and asset management group. He develops and manages investments for global families and entrepreneurs in his role as an Independent Asset Manager (IAM) with a Swiss based asset management business. He has developed a deep global bench of contacts across industries, and across his various business interests he can draw on a unique set of skillsets that enables him to provide actionable investment insights for optimal risk/return balancing. He provides The Strategic Funds group with perspectives on macro trends for the identification of risks and opportunities. He is available for conversations with clients and interested parties on global macro trends and how they can best deploy the Strategic Funds’ sets of strategies to protect and optimize their broader investment portfolios and navigate the ever-changing global landscape.

What’s going on in the Crypto Sphere?

CRYPTO TRENDS:

Thank You for your Interest