As the buzz around bitcoin (BTC) fades, institutional investors and portfolio managers are beginning to view cryptocurrencies as a “serious market” to invest in, says the CEO of 3iQ, the first issuer of Canada’s bitcoin fund. Fred Pai says
In an interview with Cointelegraph during Bitcoin 2023, Pye discussed the advanced Canadian regulation for cryptocurrency trading and how it has attracted investors to the digital asset market.
According to Pye, fund managers and institutional investors managing diversified asset portfolios are looking for alternative investment strategies amid a global inflationary environment and macroeconomic challenges.
“The FOMO is gone on Bitcoin. It has all shifted to AI. [inteligencia artificial], So now the right institutions and portfolio managers, people who are responsible for managing diversified portfolios, are starting to see bitcoin as a serious market.”
It’s not just about maximizing profits, says Pye. For institutional investors, cryptocurrency use cases will be a growing trend in the coming years. “The theme for 2024 and beyond is definitely use cases. So, we have this beautiful technology, now let’s put that beautiful technology to work,” he added.
Regulatory challenges to institutional adoption have been there for some time, but given the US Securities and Exchange Commission’s reservations towards the crypto space, Canada has notably taken the lead in launching crypto ETFs in North America. ,
ETF refers to Exchange Traded Fund which is a portfolio of assets whose shares are traded in the stock market. They combine the features and potential benefits of mutual funds, stocks and bonds.
Canadian regulators have approved several cryptocurrency ETFs in recent years, including bitcoin and ether (ETH) products from 3iQ, Objective Investments, and Evolve Fund Group, which attracted millions of dollars into their crypto products.
“They have never been undervalued,” says Pai about managing regulated digital asset ETFs in Canada. , […] We can track encrypted where the bitcoin came from, so we only buy clean bitcoin. And I think these are all features that people are concerned about.”
Canada’s latest initiative for digital assets is based on a public consultation on a central bank digital currency (CBDC), in which the local monetary authority asked what features the country’s citizens would like to see included in a potential Canadian digital dollar. The results of the Canadian consultation are expected to be published later this year.
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