Head of Fidelity Sees Crypto Mirror the Commodities Market Prior to its ‘Boom’
Head of Fidelity Digital Assets Europe, Christopher Tyrer, sees a striking resemblance of the global crypto industry with the 1990s commodities boom.
Speaking with macro guru, Bitcoin and crypto expert, Raoul Pal in a new video on his Real Vision channel, the Fidelity head believes that crypto markets are showing similar trend to commodities did back in the days. He said:
“People are asking: is [crypto] a real investable asset class? Does this have a place in a traditional diversified investment portfolio? These are questions that we went through with commodities 20 years ago.
And we now know that pretty much every managed portfolio has some allocation to commodities as a diversifier. The setup that we had back then and the setup that we have right now, the parallels are just really striking.”
While during the 2000s, blue-chip companies were hesitant to invest in commodities until the proper infrastructure was set up, crypto and blockchain technologies are experiencing a similar situation nowadays, Tyrer said:
“Prior to the early 2000s, most investment portfolios didn’t have an allocation to commodities. They were really corporate hedging markets. Then we saw a series of what I would call product regulatory market access and infrastructure developments that laid the foundation and enabled institutional participation.
Fast forward to today and I think that’s where we are with digital assets.”
Tyrer concluded by noting that the global markets could see a huge influx of new capital similar to what happened in the 2000s after a few years of stagnation:
“From 2000 to 2002, there’s pretty much no institutional investment into commodities. Then from 2003 to 2010, in that eight-year period, we had around $400 billion pour in.”
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Source: igaming
