Just came off a client briefing by the CIO of a listed UK private bank (long history, reputation for wealth protection). Interesting quotes from the answer to a question about digital assets:
”We have looked at digital assets and in particular BTC for some time as a tool for client portfolios”
”The only reason we have not yet gone ahead with including them in client portfolios is the absence of a satisfactory custody solution”
”As soon as we solve for that we will be entering that space given the clear anti-dilution and anti-debasement properties of Bitcoin”
Interesting. Cheers for the share.
Is the problem perhaps that the UK doesn't have many trusted and/or well known custody solutions available?
It is not a question of the UK not having trusted partners; there are many secure ways to secure your Bitcoin and they are mostly available internationally. This is simply a lack of understanding, which is not surprising as this is such a new space.
When 'Gold' was only 10 years old as an asset, it was the friggin wild west! Even so, those wanting to find secure ways to store it managed, those that didn't, found excuses as to why they couldn't. There are many similarities to 'early Gold', except the obvious one, the internet!
We live in 2020 and we live in a globally linked economy. The big institutions that are already investing in Bitcoin will be seen as the visionaries of tomorrow, when in fact they have simply done their homework and found a solution to the problem.
Yeah I think it also doesn't help that most folks have been bombarded with FUD about people losing their coins.
Very interesting post; disappointed to hear that they have not yet understood that there are satisfactory custody solutions already, they just need to seek the advice. Microstrategy would not have invested over $425,000,000 (38,250 BTC) in August had they failed to be satisfied with the safety and security of their holding.
As I say, it is more a lack of knowledge that is holding the majority back, but that will change as institutions realize that they can't simply sit and wait this out
Probably right. There is in any case a follower mentality in institutions. They’d rather leave upside on the table and let others be the guinea pigs.
Yeah, I agree... there will come a point in the next 12 months where FOMO will take over and institutions investing in Bitcoin will be a majority and not the minority