Help! 'I’ve got £100 million of Ethereum on my computer'

There is an assumption that financial professionals know about crypto, but that would be wrong according to Ivan Pierson, who runs a private advisory working with venture capitalists and hedge funds.

“We're seeing some of these hedge funds and wealth managers, and now they're receiving calls by people of a younger generation. They're basically turning around and saying ‘My mum's asked me to call you because, you know, I've got 100 million quids worth of Ethereum on my computer, and she thinks that it's probably a good idea that I don't leave it on the computer right.’”

Pierson says the hedge fund or wealth manager is usually a little bit confused as to why a young-sounding person is on the phone to him in the first place. At this point they realize they don't know anything about how to store this crypto safely or how to manage it.

“So that's the problem. These guys are now having to really integrate with the crypto space and truly understand what the blockchain is, how it operates, how cold storage secures your crypto assets, and how to safely and securely store them.”

And so begins an education process to quickly get up to speed on all things crypto and blockchain, which for many is out of their comfort zone as they only deal with regulated financial products.

“A lot of hedge funds and wealth managers are now starting to reach out for education so that they know what they're talking about and how to deal with these issues. “A lot of the products they deal with are regulated. And you know that has inhibited them from really deep-diving into the (crypto) space.”

Pierson is a strong advocate for mass adoption and believes the involvement of financial institutions can only help.

“The market's growing at 30% a year, so crypto users are growing. Once regulation starts to really take hold, a lot of the corporations and institutions that have stayed away will start to produce products, and provide products that everyday people can use.”