On June 16th, we held a presentation of a report by CFA Institute, the global association of investment professionals, establishing a series of recommendations for fiduciaries, investors and policymakers.
The report distills the findings from CFA Institute interviews with investment professionals and crypto experts, and discusses key emerging issues that the market will need to clarify before cryptoassets can progress from the perspective of investors. The report offers an objective viewpoint about merits and risks that the crypto market poses to a typical investor, while highlighting the perils of a system where traditional intermediaries would no longer be responsible for guaranteeing and securing transactions, facilitating price formation, or raising capital.
Oliver Fines, CFA, co-author of the report, provided a dispassionate analysis of the impact of these new instruments from a practitioner and investor standpoint, focusing on three key issues that will need to be resolved as the sector matures:
- What is the intrinsic value of cryptoassets?
- Are cryptoassets compatible with the fiduciary duty of investment managers?
- The custody problem and safekeeping of client assets.
These questions were discussed with the audience and provided some context using recent events and market reaction.
Read the report (pdf)
Read the presentation (pdf)