To our mind, abuse and manipulation is the most pressing short-and medium-term challenge for crypto values.
In recent months, we have largely stayed on the sidelines of one of investing’s most-polarizing debates: cryptocurrencies. We weighed in late last year (see WILTW September 7, 2017), concluding the speculative euphoria that drove the meteoric ascendance of cryptocurrencies would subside as rising regulatory scrutiny fomented investor uncertainty. As we’ve watched many of the market’s marquee tokens decline more than 60% since December, our position has remained constant. However, with developments mounting in the marketplace — from Intercontinental Exchange (ICE) announcing a federally-regulated market for bitcoin to the SEC’s looming decision on a bitcoin ETF — clients have asked for our current short-, medium-, and long-term outlook on cryptocurrencies.