Brian Kelly, the CEO of BKCM, recently spoke on CNBC’s Power Lunch show regarding the state of the cryptocurrency market currently. He also spoke about the general atmosphere of the market on the heels of Fidelity, the fourth-largest asset management firm in the United States, making announcements of a cryptocurrency trading platform for institutional investors.
While this has been one of the biggest and most positive news over the last week for Bitcoin [BTC] and other cryptocurrencies, Brian Kelly gave his two cents on the matter. As the firm is also targeting custody solutions along with their investment product, Kelly applauded this, stating:
“Custody has been a very very big hurdle and having someone like Fidelity put their stamp on it and say yeah this is a new asset class and we’re going to custody this. I believe they even said that they might have insurance. [The move] is a step closer.”
Kelly went on to speak about the recent news regarding Yale investing in a cryptocurrency fund, drawing on it as an example to strengthen his point that the proverbial herd is “starting to turn” in the direction of the cryptocurrency market. This was in reference to the investment of Yale University in a fund known as Paradigm, Reportedly, the fund raised about $400 million, which included the contribution made by Yale as well.
Kelly elaborated on what this meant for the cryptocurrency space, stating:
“This [Yale] has put everybody on notice especially in the institutional area. You either have to have a strategy for investing in this, or a reason for why you’re not. So I would expect over the past three months, six months, we would start to see the proverbial herd really start to turn in this direction.”
Kelly also provided additional information regarding the nature of the fund that Yale had invested in, stating that it was around 70% cryptocurrencies and 30% infrastructure plays. He went on to say:
“I believe the fund Yale is investing in is 70% cryptocurrencies 30% infrastructure plays but its investing in a fund, we need new buyers, we need fresh capital coming into this space.”
Brian Kelly’s statements echo those made by Mike Novogratz during the Institutional Crypto Conference.