Are We in a New Era of Crypto Investing?

When we talk about fintech, we’re frequently discussing how the industry is disrupting traditional banking. And is there any technology that’s more disruptive than cryptocurrencies? Although it hasn’t fully replaced our banking system, cryptocurrencies have long offered an alternative way to conduct commerce.

But that’s just the tip of the iceberg. As digital technologies are integrated more frequently and deeply into every aspect of our lives, cryptocurrencies are becoming platforms for developing and delivering applications, providing the opportunity to completely transform almost every industry they touch.

As a result, there is now a vast ecosystem of crypto-related services has grown significantly in recent years. One key area is cryptocurrency investing. More than just a place for individuals to buy and sell cryptocurrencies, crypto investment firms hold billions of dollars in crypto assets and manage them on behalf of their investors.

Case in point is our guest on this week’s Fintech Growth Talk. Ryan Rasmussen is a crypto research analyst at Bitwise Asset Management, one of the largest crypto asset managers in the world. With $1.3 billion in assets across a wide variety of assets, Bitwise develops pioneering investment products, including crypto index funds that deliver secured exposure to Bitcoin and leading cryptocurrencies. Bitwise works with institutional investors, financial advisors, hedge fund managers, and others to help them understand, evaluate, and invest in crypto as an asset class. The latest Crypto Market Quarterly Review was recently published for Q3 2022, including an overview of the overall crypto landscape, biggest events, and data-driven insights.

“It’s a technology it’s really changing the way that we interact with each other, interact with the economy and interact with money,” says Rasmussen. And it has real-world consequences.

A prime example of this is Etherium’s recent shift from proof of work to proof of stake, which experts say will reduce energy requirements needed to run the blockchain by an astonishing 99.9%. This vital change, says Rasmussen, opens the door to new investors who have environmental, social and corporate governance (ESG) initiatives who are required to only invest in sustainable technologies.