A United States-based firm, Cambridge Associates, a pensions and endowments consultant with more than $388 billion in assets under advisement (AUM), has revealed that institutional investors should start delving into the blockchain and cryptocurrency sector.
Recently, Cambridge Associates released a research note dubbed “Cryptoassets: Venture into the Unknown,” that explained the state of blockchain sector and encouraged users to begin planning on investing and utilizing opportunities in the blockchain industry.
I'm not sure how good of an idea putting your entire pension fund into a solely cryptocurrency based fund really is.
Firstly, you are trusting someone else to hold the bitcoins for you, which takes away from the trustlessness of bitcoin that underlies its fundamentals. Secondly, the short term price swings that are present mean that if you have to access your pension fund at a relatively inopportune time, you simply don't have the freedom to continue to hold, or to have the ability to buy/sell yourself.
I'm not saying that it's a bad idea to invest in bitcoin at all. I just think that to do so, you need to hold that BTC in your own private keys and address, not in custody with a third party institution. Diversifying some of your pension savings into crypto is smart as well, just don't blindly go 100%.
I wouldn't doubt institutions will look at this opportunity in the future, as the market continues to develop and regulations clears up though.
