FOMO is usually associated with the phenomenon of retail investors chasing bubbles, as we saw recently in the fall of 2017 with the $20k chase in bitcoin.
But institutions and organizations don’t want to get left behind, either. So sometimes they, too, are sort of forced to chase a trend for fear of being left behind.
Look at the Assets Under Management business. And consider the fact that Fidelity is entering the crypto game. If you’re intent on keeping your cash and clients in-house, and Fidelity has a product offering in digital assets that you do not, there is a potential snag: what if your clients walk out the door to go to Fidelity because they have something you don’t.
As they say in Montevideo: “Es una problema.”
A few coping strategies include: ignore the whole thing and close your eyes, and we’re seeing some of that; another option is to scream “FUD” as loud as you can and hope the genie goes back into the bottle; and a third option is to consider reality – the fact that the average 25-year old trusts bitcoin more than Apple – and plan for the future.
If you’re business revolves around keeping retail cash on your balance sheet, a question: do you have a bitcoin roadmap that keeps you competitive against the 8,000-pound gorilla, Fidelity.