Wellington Asset Management Ponders Adding Cryptocurrency To Its Mix

Investing, News | March 5, 2018 By:

Boston-based asset manager Wellington Management Company is considering including cryptocurrencies in some portfolios, as its systems were recently upgraded to enable trading in bitcoin futures.

Wellington Managementis a private, independent investment management company. The firm has client assets under management totalling over US$1 trillion, and serves as investment advisor for over 2,150 institutional clients in over 50 countries.

As reported by Bloomberg, the company’s team of experts, which includes equity research analyst Matthew Lipton and trading technologies principal Lee Saba, has begun to explore positions in companies such as mining manufacturers and those working closely with the technology behind cryptocurrencies, the blockchain.

“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 maintains a cautious position on cryptocurrency, citing “the newness and volatility of the space.” As of right now, the firm’s analysts are conducting extensive research into cryptocurrencies, before producing further reports on their digital currency plans.

The move to send huge capital to their disposal in the direction of crypto companies is probably due to the recent incredible growth of shares of firms that announced a pivot to blockchain technologies. Companies such as Overstock, Nvidia, and Square have all seen their share price jump due to their participation in the crypto space. Shares in Taiwan Semiconductor Manufacturing Co., which manufactures chips for Nvidia and Advanced Micro Devices, have climbed 34 percent since the beginning of 2017 and surged to a record in January.