More fund managers might start investing more in cryptocurrency soon, as an independent U.S. rating agency is set to issue grades for a handful of cryptocurrencies by Wednesday.
Weiss Ratings, a U.S. independent rating agency, had announced that it will issue letter grades on cryptocurrencies, to be released on January 24. Beyond market leader bitcoin (BTC), the rating agency will also issue grades for Ethereum (ETH), Ripple’s XRP, Bitcoin Cash (BCH), Cardano (ADA), NEM (XEM), Litecoin (LTC), Stellar Lumens (XLM), EOS, IOTA, Dash, NEO, TRON, Monero (XMR), Bitcoin Gold (BTG) and many others. This will the first of its kind in history.
“Many cryptocurrencies are murky, overhyped and vulnerable to crashes. The market desperately needs the clarity that only robust, impartial ratings can provide,” said Weiss Ratings founder, Martin D. Weiss, PhD. “We’re proud to be the first to bring that benefit to investors — to help them cut through the hype and identify the few truly solid cryptocurrencies. Our ratings are based on hard data and objective analysis. But they’re bound to create controversy, including some grades that may come as a surprise to some people.”
And Weiss Ratings isn’t just some snake oil salesman either.
The rating agency, which was founded in 1971, grades about 55,000 institutions and investments including banks, credit union, insurance companies, stocks, ETFs and mutual funds. Unlike Standard & Poor’s, Moody’s, Fitch and A.M. Best, Weiss Ratings prides itself on never accepting compensation of any kind from the entities it rates. Its independence and accuracy have been noted by the U.S. Government Accountability Office (GAO), Barron’s, The Wall Street Journal, and The New York Times, among others.
It’s no secret that Wall Street has been interested in entering cryptocurrency these days. The news comes at a perfect time for them, as cryptocurrency markets are still reeling from recent news of its impending regulation, particularly in countries like Korea and the United States.
With the issuance of grades, more fund managers may very well enter the market to buy coins which rating agencies might deem safe.