- Matteo Perucchio is an investment industry heavyweight with over 30 years of experience in conventional finance.
- He is now the International Head of Wave Financial, a $1 billion crypto asset manager for ultrarich.
- He’s sharing his bullish predictions for 2022, including how two controversial protocols could see skyrocketing next year.
Over the past year, Wave Financial, a crypto wealth manager, has doubled its assets under management to more than $1 billion.
Part of that growth came from a deep dive into international markets, with Matteo Perucchio, president of the international firm, in the lead.
Before making the leap into crypto, Perruccio’s career in traditional finance spanned 30 years, including stints as global head of key clients and strategic relationships at Jupiter Asset Management, as well as CEO of Olympia Capital Management, a hedge fund fund.
Perruccio’s light bulb took off when he compared innovation in crypto to both the rise of the derivatives market and alternatives within hedge funds.
“I remember the first conversation I had with people about hedge funds, you know, they were going, ‘It’s impossible to get an absolute return, they are all scams,’” Perocchio said. “A very similar narrative I heard whenever I mentioned to my colleagues about crypto and digital assets, and of course at Any innovation, there is fraud.”
When Perruccio looked at it more holistically, he was able to see the opportunities in the market and looked forward to moving into the space. Wave Financial checked all the boxes as the first regulated crypto asset manager in the US, which seemed to be a good compromise against its traditional financial background.
“For me, he was the perfect partner…so I joined as an international head to help drive growth outside the US and build the business,” he said.
Perruccio expects the next wave of cryptocurrency adoption to come for investors looking for specialized wealth managers, particularly in international markets such as Switzerland.
Investors were previously coming to Wave Financial looking to gain some reasonable exposure to cryptocurrency with the leading currencies, but now the demands are more specialized in different pockets of the cryptocurrency market.
“People are saying, ‘How can I get thoughtful exposure to risk management for the evolution of DeFi and the revolution?” he said. “And that’s not easy…the actual investment process, where to hold it and all that, and the risks of the counterparties are very complex.”
He said the growing interest in the company’s NFT funds and active venture capital funds illustrates this.
Perruccio expects the next wave of institutional adoption to lead to a significant crypto rally in 2022 on a difficult backdrop for equities and fixed income.
“Personally, I’m headed down to 2022 in stocks…which is a question of where you invest your money,” Perocchio said. “If we can get negative real returns in fixed income? Where do you put your money?”
Perruccio predicts that 2022 will be the year when a bitcoin exchange traded on the market can appear in the United States. It is also expected that more players will follow Citi’s recent announcement of its digital assets division for institutional clients.
“Things are starting to move, and I think 2022, I hope I’m right, will be the year we see it happen,” he said. “We will get banks to agree to hold cryptocurrencies in a lot of markets. We saw India announce regulation… so I think a lot can happen.”
But even with the path looking strong for 2022, Perucchio is taking a cautious approach to his forecasts for the markets.
“First of all, I don’t trade cryptocurrency, and there is a lot of money to be made from cryptocurrency trading, but what I buy, I buy because I believe in its medium to long-term prospects,” Perocchio said. “So I’m a HODLer.”
While many industry signals suggest that Bitcoin may erupt at the end of this year, most industry experts believe it will not reach $100,000 by the end of the year, he said.
“I expect he’s going to start a bull run, maybe $70,000 to $80,000, something like that, by the end of the year, but I think we’re going through a positive moment,” Perocchio said.
Moreover, he expects Bitcoin to reach $125,000 by the end of 2022, but it will not necessarily be a smooth ride.
“What I tell my friends and family is, be exposed to this space, and realize that it’s very volatile, so don’t commit to capital that you can’t afford over a shorter period of time,” Perocchio said. “But I think the overall trajectory is upward over the next five years.”
Beyond bitcoin, he sees momentum for two more controversial protocols, Ripple (XRP) and Cardiano (ADA).
Ripple is the original token of RippleNet, a blockchain-based payments network that launched in 2012. In 2020, Ripple was commissioned by the US Securities and Exchange Commission (SEC) to illegally raise $1.38 billion in unregistered securities offerings. . The case is still ongoing.
“Don’t forget either, we’ve been rumored to walk out of her conversations with the Securities and Exchange Commission, and it’s all been positive,” Perocchio said. “If that happens, you can expect it to happen with great force.”
On the other hand, Cardano is controversial because it is more centralized and has a sham leadership, which goes against some of the basic principles of decentralized cryptocurrencies.
“I think Cardano has fantastic potential to climb up. It’s a great organization, and it’s a great protocol,” he said.
Perruccio suggests that there has been some innovative development resulting from Cardano, as well as interesting work in the field of digital identity.
“But we see them as high-quality programmers and community,” Perotchio said.
On a note, Perruccio’s colleague, President and Managing Partner Ben Tsai said he expects Cardano to be the best performing Tier 1 altcoin in 2022 and has a more optimistic prediction that Bitcoin will reach $200,000 by the end of next year.