Investing in the future of the crypto industry doesn’t need to require buying digital currencies, according to a PGIM executive.
Investors should focus on the so-called picks and shovels of the crypto arena, who are helping to build out the industry’s infrastructure, Taimur Hyat, PGIM chief operating officer, said. While speculative traders may be able to turn a quick profit, there’s not a long-term case for buying actual cryptocurrencies, which Hyat says are highly correlated with equities and offer no portfolio diversification benefits.
“There’s a bit of a misconception that if you believe in the crypto ecosystem, you have to invest in a cryptocurrency,” Hyat, who oversees operations at the $1.4 trillion asset manager, said on Bloomberg’s “QuickTake Stock” broadcast. “We do see value in some of the incidental innovation that’s happened in the creation of these currencies, where you don’t need to go into the currency itself. But you can invest in blockchain, particularly...
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