2020 had more than its fair share of ups and downs.
And the industry that may have seen the most fluctuation was the financial one.
Specifically, the digital side of the financial industry.
Pundits in the traditional financial industry have been quick to decry the digital currency — especially as its golden child Bitcoin has had a rocky go of it recently.
But despite its oscillations, Bitcoin has seen a generally upward trajectory since its inception.
More recently, Bitcoin and other cryptocurrencies have even been recognized and adopted by some of the more progressive financial institutions.
Between endorsement from some of the biggest financial services providers in the world and current trends that are spurring crypto acceptance, all signs point to the fact that crypto is going mainstream.
If you’re not sure that your financial tracker can keep up, keep reading to find out the best portfolio management tool for modern investors.
Adoption Among Financial Leaders Is Pushing Crypto Into the Mainstream
From contemporary monetary services providers to a financial advisory firm to an investment institution founded in a by-gone era, here are some of the important early adopters bringing crypto into the mainstream.
Square Bets on the Future of Bitcoin
In mid-2020, U.S.-based financial services company Square invested about 1% of its total assets in Bitcoin — which adds up to approximately 4,709 Bitcoins valued at around $50 million.
Square views their investment as a declaration of their belief in crypto as “an instrument of economic empowerment.”
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Amrita Ahuja, Square’s chief financial officer. “As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
PayPal Furthers Understanding and Acceptance of Crypto
In late 2020, Another U.S.-based financial services provider, PayPal, launched a new feature enabling users to buy, hold, and sell crypto (namely Bitcoin, Ethereum, Bitcoin Cash, and Litecoin for now) from their PayPal accounts.
By legitimizing crypto as a funding source for purchases at any of the 26 million merchants around the world where PayPal works, the company aims to “significantly increase cryptocurrency's utility” as well as consumer understanding of the digital currency.
Fidelity First of Its Kind to Go Digital (Assets, That Is)
In the first quarter of 2019, one of the largest asset management firms in the world with approximately $3.3 trillion in assets under management — Fidelity Investments Inc. — started offering Bitcoin custody services via their subsidiary, Fidelity Digital Assets.
Since then, Fidelity graduated from just custody operations to launch a Bitcoin mutual fund that’s available to accredited investors. In addition, there’s Fidelity Charitable, which accepts donations in the form of digital currencies.
These developments make Fidelity, founded in 1946 in Massachusetts, one of the first among “traditional” financial firms to dive into the world of alternative assets.
Cambridge Associates Encourages Crypto Exploration
In a 2019 report aptly titled “Cryptoassets: Venture into the Unknown,” the widely-trusted global investment and advisory firm Cambridge Associates recommended that institutional investors start exploring digital assets such as crypto.
And exploring they are.
According to a study by the relatively new subsidiary Fidelity Digital Assets, nearly 80% of the 774 American and European institutional investors they surveyed found digital assets “appealing.”
In fact, close to 40% had already invested in digital assets and 60% said it was only a matter of time before they’d be adding digital assets to their portfolios. Bitcoin was the most popular digital asset among respondents.
“These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class,” added president of Fidelity Digital Assets, Tom Jessop. “This is evident in the evolving composition of our client pipeline, which spans from crypto native funds to pensions.”
2021 Trends That May Further Crypto’s Acceptance
As if major money authorities entering the crypto space isn’t enough, there are even more trends that show how crypto will continue to grow in mainstream acceptance in 2021 and beyond.
A New American Administration Could Propel Crypto Forward
January 20, 2021, marked a drastic shift in American politics as Joe Biden became the 46th president of the United States.
Crypto enthusiasts are hopeful this new party will be more welcoming of digital currency, of which the previous administration was “not a fan.”
“I think we have opportunity in a Biden administration,” said Kristin Smith, executive director of the Blockchain Association.
“I think what we see with a Biden administration is an opportunity to get some fresh faces into the key regulatory agencies that might be more willing than some of the other regulators that we have today to move forward on policies that would be good for crypto.”
One such fresh face is Gary Gensler — former investment banker; current leader of the Biden–Harris transition's Federal Reserve, Banking and Securities Regulators agency review team; and nominee for the chair of the Securities and Exchange Commission.
The fact that Gensler teaches courses on global economics and financial technologies at the MIT Sloan School of Management is an indication that his involvement, as well as the involvement of others like him, mean good things for crypto’s advancement in American over the four years, at least.
Your Own Bank Might Even Get On Board With Crypto
In the fall of 2020, Kraken was the first cryptocurrency firm in the U.S. to become a bank, thanks to the special purpose depository institution (SPDI) charter granted by the state of Wyoming — a surprising early supporter in the mainstream adoption of crypto.
Then in January of 2021, the Office of the Comptroller of the Currency made a big move in the banking-digital currency relationship by releasing a letter to U.S. financial institutions permitting them to use stablecoins (a type of cryptocurrency) and participate as nodes in a blockchain.
Translation? U.S. banks are officially legally authorized to deal in crypto-based transactions.
We’re happy to agree with the Blockchain Association, which called the announcement “ … a giant advance for crypto because it paves the way for these networks to be a formal part of the [U.S.] financial infrastructure.”
Digital Currency Competitors Are Likely to Rise
Noting the gradual — and recently, more meteoric — growth in the value of Bitcoin since it entered the spotlight, it’s only a matter of time before large companies get into the digital currency market.
And we think that’s a good thing. In addition to the options that more digital currencies introduce to consumers, they also put pressure on expensive and time consuming traditional transactions to do better.
Facebook’s (newly-named) Diem cryptocurrency is already slated to launch early in 2021. And there are the rumors among crypto insiders that several of the other tech leaders are or will soon be working on their own digital currencies.
If companies with the budget and reach of these global giants can get their digital currencies off the ground, we expect to see an explosion of interest in, understanding of, and eventual adoption of cryptocurrencies.
To sum it up very, very briefly: Crypto is going mainstream. That means it’s likely going to make up some element of your investment portfolio soon.
The problem? Your traditional financial tracker isn’t equipped to stay on pace with these rapid developments.
Here’s everything you need to know to keep up.
What Makes Kubera the Best Financial Tracker in a World That’s Going Crypto
If you’re like the vast majority of modern investors who need (or will soon need) their traditional portfolio management tools to work with alternative investments — you’re in for a bad ride.
It’s time to switch over to a financial tracker that’s built to manage all your assets, from the traditional to the alternative to the digital, in one place.
Kubera is a modern financial tracking app that was created by a small team of investors who needed a tool that could keep up with their portfolios, which consisted of a healthy mix of assets including different fiat and crypto currencies.
So that’s exactly what we built.
Intrigued? Here are the key features that we added into Kubera to make it an ideal tool for investors in an increasingly crypto world.
We’re Always Building New Integrations with Leading Crypto Exchanges and Wallets
Kubera was constructed with the belief that crypto is just as important to a portfolio as any other asset type, not an afterthought or add-on.
That’s why we’re able to integrate with more financial institutions than most other financial trackers.
We already work with the leading aggregators like Plaid, Yodlee, Salt Edge, and Zabo to connect with bank accounts, brokerages, financial apps, and crypto wallets and exchanges around the world. And we’re always working to make sure we’re abreast of financial developments and able to connect you with whatever modern platforms you’re using.
Automation Makes it Easy to See Your Crypto Value in Real-Time
A common challenge when it comes to accurately tracking a modern portfolio that includes a variety of assets is understanding its true value and, ultimately, your net worth at any given time.
That’s why Kubera makes it easy to add assets in their “native” currency, choose your default preferred currency, and enjoy a real-time view of the value of all your assets with automated conversions based on real-time rates — crypto exchanges included.
And Kubera’s tickers for the leading individual stocks or cryptocurrencies enable you to keep an eye on the market and make educated purchasing or selling decisions.
Crypto and Privacy Go Hand in Hand — And Kubera Prioritizes Both
The record-keeping database (blockchain) upon which some cryptocurrencies exist is crucial in their remaining decentralized and more anonymous than other types of assets.
Knowing this, it’s easy to see why privacy is widely valued among crypto investors.
Kubera is privacy-friendly by nature. What do we mean? We mean that we charge a simple, affordable subscription fee so we don’t need to sell your data the way other financial management apps do.
On top of that, Kubera takes bank-level security measures, uses cutting-edge encryption methods, and keeps customer banking and crypto credentials safe with the same industry-leading third-party aggregator services mentioned earlier.
In addition, Kubera goes beyond any “standard” privacy and security measures with our unique safe deposit box and beneficiary management features.
Our safe deposit box gives you a place to store sensitive documents — such as wills, trusts, and the like — while our beneficiary management functionality enables you to name an heir who will be granted ownership of your safe deposit box and financial portfolio if you can no longer manage them.
Ditch the Traditional and Try the Best Crypto-Focused Financial Tracker Free Today
Crypto is becoming a mainstream asset. Without the right modern financial tracker, you’ll never be able to make the most of your investments the way you want to.
Sign up for an affordable Kubera subscription right now.
If you’re a financial professional or would like to use Kubera with your clients, contact us at hello@kubera.com to learn about our white-label solution.
