Massive Asset Manager Wellington Mulls Bitcoin-Linked Investments

The firm would only invest in crypto assets if explicitly permitted by client guidelines‎.

One of the largest asset management firms in the world might hop on the ‎Bitcoin-linked investment wagon. ‎

The Wellington Management Company, a Boston-based asset manager ‎with $1 trillion in funds under management, said that its portfolio teams may include the digital asset class ‎into their investment universe.

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The firm confirmed that the ability to trade Bitcoin futures is ‎now already plugged into its systems, whilst its teams are looking into how ‎it could include crypto assets into some portfolios.‎

But rather than buying wild-trading cryptocurrencies itself, at least for ‎now, Wellington will buy shares of companies that are embracing ‎blockchain, the decentralized technology that Bitcoin uses to keep a running ‎record of transactions.‎

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‎“Various Wellington teams are already positioning portfolios to take ‎advantage of mining and blockchain implementations by, for ‎example, investing in select chipmakers making components” the firm said.‎ “Portfolio teams would only invest in cryptoassets if explicitly permitted by client guidelines.”

Wellington Management invests in nearly all segments of the ‎capital markets, including equity, fixed income, currency, commodity and alternatives ‎markets across the world.

‎The move is a sign of how the falling price of digital coins didn’t hurt ‎interest from institutional investors in the exposure to ‎cryptocurrencies, despite warnings from regulators that they are ‎unregulated and could bring serious risks.‎

Investor interest in trading cryptocurrencies prompted CME Group and Cboe to launch Bitcoin futures trading ‎last year.

The independent, transparent Bitcoin benchmark that the ‎world’s two largest derivatives exchanges offer helps further professionalize the digital asset class and finally ‎bring it some regulatory cover. It also makes ‎cryptocurrency trading a lot more palatable for the ‎institutional players, as the regulated instrument allows ‎them to hedge for Bitcoin volatility and avoid some of the ‎hassles of investing in the coin directly.‎

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