Ready to Trust: Are Crypto Assets Right for Treasury?

When in 2021 Bitcoin started hitting record highs, it coincided with some very large corporates, notably Tesla and MicroStrategy, declaring their commitment to the concept by investing huge sums. This created a major ‘fear of missing out’ moment for many investors, especially those in the corporate sphere, and prices started spiralling upwards.

While some corporates had decided they were now amenable to holding Bitcoin, the arrival of the current crypto- winter saw their impetus for more engagement rapidly disappear. Indeed, it seems that many ambitious plans were brought to a standstill by the sudden realisation that many organisations were in fact not ready to engage with ‘volatile’ crypto as an asset after all.

With the fallout of the pandemic amplified by the crisis in Ukraine resulting in an economy debilitating level of inflation globally, corporate attention has been drawn elsewhere. However, Thiagarajah observes a continual background inflow of traditional finance into crypto, with more asset managers, hedge funds, and even pension funds, onboarding. Such collaborations as Blackrock and Coinbase, and Alan Howard’s $1bn raise for a crypto focused fund, show that the TradFi world can no longer ignore crypto.

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