Explained: Why cryptos are gaining currency globally amid bitcoin rally

Investors, including large corporations, view them as a potential hedge against uncertainty, and mainstream investment banks too are jumping into the game

In the last year, cryptocurrencies have become mainstream assets. And it isn’t only the fact that they have delivered stunning returns as a class, beating stocks, debt instruments and precious metals.

S&P Global intends to launch a cryptocurrency index in 2021, tracking over 550 different cryptocurrencies, which means that hedge fund exposures to this asset-class will surge. A major investment bank (Citi) suggests that bitcoin (currently trading at around $26,600) could hit the insane heights of $300,000. Half a dozen global investment majors are now offering managed crypto investment services, which means that they will be persuading high net worth