COINSHARES
A seismic shift in perception Interview with Christopher Bendiksen & James Butterfill
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he world of cryptocurrencies has experienced a sea change in the past year. Although the nature of Bitcoin itself is immutable, which is actually part of its attraction as an investment, the sentiment towards these assets has been shifting quite dramatically. “The change in tone we observed over the course of 2020 as well as the difference in reception is unlike anything I’ve seen before. Many investors who were previously either dismissive or negative, have either completely changed their tune or at the very least, they want to hear more about how it works,” outlines Christopher Bendiksen, head of research, CoinShares. Asset managers like CoinShares have played a significant role in making this transition happen. James Butterfill, Investment Strategist, explains: “Until March and April last year, Bitcoin was still, largely, a speculative asset. Part of DIGITAL ASSETS IN FOCUS | Mar 2021
that was because a lack of understanding of what Bitcoin actually is. “A big part of our job has been to re-educate clients and help them understand how Bitcoin can fit in a portfolio. We have been conducting research and talking to investors about the fact that it is its own asset class.” The path from initial interest to eventual investment takes investors on a journey, an essential part of which is this understanding and knowledge. One of the concerns investors often put forward when considering a Bitcoin allocation is its volatility. Butterfill comments: “Its fair for people to comment on the volatility in the Bitcoin market, but we try to help them frame this market movement in the right context. Bitcoin is still a very young asset class, being only 12 years old. Investors need to consider it as they would a small cap company which 11
