The American global investment management company PIMCO with assets under management (AUM) of $2.21 trillion plans to start trading cryptocurrencies. Daniel Ivascyn, the company’s Chief Investment Officer, said this in an interview with CNBC.
“Now we are potentially considering trading certain cryptocurrencies as part of our trend-following or quantitative trading strategies, then we will move on to work more on the fundamental side,” he said.
According to him, this is a gradual process, during which the company has already spent a lot of time studying internal procedures, communicating with investors.
Taking baby steps in a rapidly growing area
“We will take baby steps in an area that’s rapidly growing,” said Ivascyn. He added that some of PIMCO’s portfolio hedge funds trade cryptocurrency-linked securities.
Ivascyn believes that decentralized finance (DeFi) may well radically change the investment industry and undermine the company’s business.
“The firm is thinking about scenarios where this could lead us. It is necessary to make sure that we will be competitive; in order to cope with a rapidly changing environment that has quite attractive offers. Especially for the younger generation of investors,” Pimco CIO stressed.
The next generation of investors
Earlier in July, Larry Fink, the chief executive officer of the world’s largest investment company BlackRock by AUM ($9.5 trillion), announced minimal customer interest in cryptocurrencies. The head of BlackRock admitted that investors interested in cryptocurrencies and meme stocks are simply not clients of the company.
“If we could raise the level of financial literacy. If we could help people focus not only on speculation, the ups and downs of the markets, but also switch their interest to long-term investments,” Fink said.
According to him, improving financial literacy and long-term investments would make retirement less problematic for the next generation. Previously, Fink said that Bitcoin will not replace fiat money, but it can turn into a large asset class.