Asset Manager Kinea Invest in Ethereum

Kinea, one of Brazil’s largest asset managers, announced that it had made exploratory investments in Ethereum. Marco Aurelio Freire (manager of funds at Kinea), made the announcement. He stated that the company had only invested a small portion of its assets in Ethereum since two months ago. The investment arm of Banco Itau Kinea has more than R$56billion (roughly $10.2B) in assets.

Kinea Sees Crypto Investments As Viable Alternative

Kinea, a leading Brazilian asset manager, has made exploratory investments in cryptocurrency. The company has a large amount of assets under its management and decided to invest in Ethereum instead of the more popular bitcoin. Marco Aurelio Freire (manager of funds for the company) stated to local media that the investment was made two years ago. Freire didn’t disclose the amount, but he did state that it was small to test the market.

Freire believes that cryptocurrencies are an asset that can diversify portfolios.. He stated:

I see cryptocurrencies as a secular trend in which it is worth having an exposure.

His beliefs regarding the current Brazilian situation and the need for international diversification of investments seem to be in line with this. Crypto assets are a great way to diversify your portfolios.

Bitcoin vs Ethereum

Many people find the election of Kinea strange in an environment dominated by institutional bitcoin investments. Freire justified his decision by saying that while bitcoin was the catalyst for decentralized finance, other currencies have interesting things to offer.

Freire commented:

People generally confuse cryptocurrencies with bitcoin, but there is much more to the cryptocurrency market than just bitcoin.

Freire referred to this by pointing out the recent success of NFTs (nonfungible tokens), and how this has revived the sports and collectible markets. Kinea managers had already stated that bitcoin was the first cryptocurrency and had a simple design. Other cryptocurrencies have since developed the bitcoin concept, solving problems such as scalability, environmental impact, and other issues.

Kinea managers said:

We believe that more developed currencies and protocols should be more attractive to investors.

In retrospect, Kinea’s investment was a good one. On August 18, 2018, the Ether price was $3,184. At the time of writing, the crypto asset has a value of $3,855.