Warren Buffett: Crypto Convert…?

“Rat poison squared” were the words Warren Buffett used to describe crypto back in 2020. At the time, he stole headlines for declaring that digital assets held “no value” and that he would never be caught hodling crypto. This week, however, the legendary ‘Oracle of Omaha’ has excited speculation that his stance may have changed.

In more detail, Buffet’s holding company, Berkshire Hathaway, has dumped portions of its investments in Visa and Mastercard whilst pumping $1 billion into Brazilian fintech bank Nubank. Nubank encompasses various DeFi holdings and is popular amongst Bitcoin investors. Perhaps most notably, it controls the platform Easynvest, which since June 2021 has been offering a Bitcoin ETF for trading.

In this context, Berkshire Hathaway’s move indicates an willingness to embrace the decentralization and digitization of finance. Indeed, crypto exposure is becoming more diverse and proving increasingly lucrative for investment institutions. According to Bloomberg Intelligence, crypto-related investment options grew from 35 to 80 during 2021, with total asset valuation rising from $24 billion to $64 billion.

As to whether Buffett’s personal convictions on crypto have changed, it may be too soon to tell. But even if he remains unconvinced of its utility, crypto is growing in popularity in the investing mainstream.