One of the leading asset managers in Brazil, Kinea, has made an exploratory investment in cryptocurrencies. Despite having a vast amount of assets under management, the company chose to invest in ethereum rather than bitcoin, the most popular choice. Marco Aurélio Freire, manager of the funds of the company, announced the investment two months ago. Freire did not disclose the amount of the investment but said that it was a small amount to test the market.
Freire sees cryptocurrencies as a necessary asset for diversifying portfolios. He said “I see cryptocurrencies as a secular trend in which it is worth having an exposure.” His statements seem to be in line with his views about the current economic situation in Brazil and the importance of international investment diversification. Investing in crypto-assets can help investors diversify their portfolios. The election of Kinea may seem strange in a world dominated by institutional bitcoin investments.
In Freire’s opinion, other currencies also have many interesting things to offer, despite the fact that bitcoin was the Kickstarter of the decentralized finance world. Freire stated, “People generally confuse cryptocurrencies with bitcoin, but there is much more to the cryptocurrency market than just bitcoin.” Freire cited the success of NFTs (non-fungible tokens), and how this has helped reinvigorate the collectible and sports markets. Kinea’s executives had already stated that bitcoin, as the first cryptocurrency, had a relatively simple design.
However, other cryptocurrencies came to refine the concept that bitcoin founded, addressing problems like scalability and environmental impact. Kinea managers said, “We believe that more developed currencies and protocols should be more attractive to investors.”