Cryptocurrency is “here to stay” but its role is unclear, Colums Kim Lew

Columbia Investment Management President and CEO Kim Lew believes cryptocurrencies will keep right here.

“I think it’s going to have a profound impact,” she mentioned in a latest interview, including, “There are many different avenues it could take.”

Lew defined that individuals within the crypto ecosystem can construct many new issues, akin to stablecoins and unusable tokens. “I think it’s clear that it will matter. It’s not clear what role it will play, ”she added.

Lew mentioned it was vital for Columbia Investment Management, chargeable for managing Columbia University’s $ 11 billion basis belongings, to mine the crypto asset somewhat “just to get it.”

She harassed the significance of guaranteeing that the corporate has relationships with people who find themselves growing experience in order that “we can use that expertise to decide which path to take”.

While cryptocurrencies should not an asset class Columbia would make investments closely in proper now due to their excessive volatility and related dangers, Lew believes crypto is one of many avenues open to long-term traders.

Related: Crypto and blockchain investments doubled in 2020

After 13 years in senior positions with the Ford Foundation, Lew was employed by Columbia University final yr to oversee the operation of one of many richest faculties within the United States.

She is definitely not alone in her curiosity in cryptocurrencies, as a latest Fidelity survey of 1,100 institutional traders confirmed. The research discovered that just about 70% of contributors – together with excessive web price traders, household workplaces, digital and conventional hedge funds, monetary advisors and funds – are anticipated to spend money on digital belongings inside the subsequent 5 years.