Henrik Andersson, CIO of crypto-asset fund manager Apollo Capital believes that institutions may soon “overturn” their conservative stance on cryptocurrencies.
The Melbourne-based crypto fund manager said in an interview with Cointelegraph that while institutional interest in cryptocurrencies is slowly increasing, especially in Australia, there are many players waiting for the right moment to strike.
Andersson admitted it large institutional investors in Australia, superannuation funds (or superannuation funds) in particular have yet to warm up to the digital asset space.
“It’s still early. So yes, I talk to a lot of family offices in Australia and smaller boutique institutions. There are no big industry super funds yet.”
“From their point of view, there is still a lot of education. So I believe it will continue for some time,” he added.
Apollo Capital is a fund manager focused on providing family office and institutional investors access to cryptocurrency investment opportunities. One of its latest funds launched is the Apollo Capital Frontier Fund, which focuses on non-fungible token (NFT), decentralized finance (DeFi) and multi-chain infrastructure.
Ask what needs to happen institutional sentiment for changeAndersson believes that will “turn around” as the big players start making more substantial moves in the space.
“No one wants to be the first in something like this. Because if you’re the first and things go wrong, then there’s career risk. At some point, that turns into the opposite,” explained Andersson.
“At a certain point, when prices go up, then people don’t want to come. And if others invest, it becomes a career risk that is not invested in.”
In Australia, several large banking institutions such as ANZ, NAB and the Commonwealth Bank (CBA) already forays into the digital asset space.
“We have seen several large banks here in Australia interested in digital assets. So that’s really, really good to see,” he said.
Notably, CBA was the first major bank in the country to announce crypto services through its mobile banking app last year, but later shelved its plans, noting that it was still waiting for clear regulation from the new government.
Others have advanced to trading stablecoins and tokenized assets.
internationally large banking conglomerates such as Singapore’s DBS Bank continues to grow its digital asset business despite the bear market, while major investment banks are also strengthening their coverage of the crypto space.
“All major investment banks in the world write research reports on the crypto space. Everyone from Goldman Sachs to Morgan Stanley, Citigroup, JP Morgan and more. So there is definitely still a lot of interest in the space from such institutional players,” he explained.
“So even though it looks like it’s going very slowly right now, you know, once the sentiment changes, we’re seeing the first players investing that can change very, very quickly.”
Earlier this week, Irfan Ahmad, Asia-Pacific digital head for the bank’s crypto unit State Street Digital, told the Sydney Morning Herald that despite the current crypto winter, institutional investors have have maintained their interest in blockchain and digital assets.