$1,000,000,000 Crypto Fund Moving Into Bitcoin and Two Ethereum Rivals as One Major Risk Emerges, Says CIO

Valkyrie Investments chief investment officer says crypto managers are turning to safe haven assets such as bitcoin (Bitcoin) as the merge approaches.

In a new interview with Bloomberg Technology, Valkyrie CIO Steve McClurg said: To tell as Ethereum (ethereum) is preparing to move to a proof-of-stake consensus mechanism in September, with crypto managers closing all positions in the second largest digital asset.

Valkyrie, which manages about $1 billion in assets, is migrating its funds to Bitcoin and other smart contract blockchains such as Avalanche, McClurg said.Avax) and Zilliqa (Jill).

“Bitcoin is really a safe haven for many of our funds right nowsome of the more established proof-of-stake protocols are also great places to go.Places like Avalanche and Zilliqa

So anything with too much exposure to ETH is really on the move for now until we see this consolidation someday. [the] middle [of] Starting in September, we will be moving to a more secure large-scale crypto protocol.

McClurg said upgrading Ethereum to a proof-of-stake consensus mechanism involves trade-offs that can pose significant risks to investors.

In the short term, I dont think the move to Proof of Stake will necessarily be great for Ethereum.

But the Ethereum network is actually more secure as proof of work. What makes Bitcoin truly the most secure network is essentially a long period of proof-of-work that has computers or validators validating transactions around the world in a decentralized way. Moving to Proof of Stake really leaves it in the hands of the few.

The CIO also said Ethereum’s security after The Merge will have to prove itself before investors holding large sums of money on the network can rest easy.

“But from a point of view [how] Ethereum needs to see how security works. Because we really think that if you have $1M+ NFTs and rely on the Ethereum network and that’s changing now, it might not be a great place to be right now. is.

Me
Don’t miss the beat apply To get encrypted email alerts delivered directly to your inbox

check price action

Please follow us twitter, Facebook When telegram

surfing The Daily Hodl Mix

Check out the latest news headlines

&nbsp

Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should exercise caution before making risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your money transfers and transactions are made at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/MR.Somchat Parkaythong