Wealth managers have to adapt to changing market and world conditions, but they have been somewhat slow to welcome the world of digital assets. While the cryptocurrency industry is still relatively new and has seen some volatility and risk, there are more than 2,000 digital assets with a total market capitalization of more than $200 billion today.
Investment in this asset class is done via digital asset exchanges, which began as virtual marketplaces focused chiefly on fiat to digital asset trading. Today, they are state-of-the-art ecosystems. Many have developed a foundation for institutional-grade trading facilities that intend to comply with international and local regulations.
Still, some wealth managers remain skeptical. Clients, however, can spur their managers to evolve into digital assets. About one-third of high-net-worth respondents to the 2018 “World Wealth Report” by Capgemini noted a high degree of interest in digital assets. Younger investors reported an even higher interest in the category.
Digital assets are modern and more regulated than ever. As a form of fundraising, they are similar to early-stage investments from a traditional venture capital firm.
Diversification has always been seen as a positive when it comes to investing – that is just one reason that more wealth managers should shake off their hesitations and look more deeply into investing in digital assets for themselves and for their clients. Read more.
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