For family offices and other asset owners, regulatory clarity is a major tailwind to consider diversifying into virtual assets. Hong Kong's new crypto trading rules could potentially bring back talent and money after the exodus.
Two of Canada’s largest pension funds are still reeling from their losses in fraudulently managed crypto exchanges and have sworn off the sector. Some experts believe the funds simply bet on the 'wrong horses.'
Hong Kong's regulator sees scope for opening up a maturing crypto market to retail investors, but questions remain about whether investors are sufficiently protected.
In partnership with State Street Corporation
This summer’s extreme market volatility created what’s being called a ‘cryptowinter’ for digital assets. Yet while the difficult conditions tested investors’ nerves, they are far from putting allocations on ice. State Street’s third Digital Digest explores the ongoing appeal of cryptocurrencies.
Institutional interest in cryptocurrency is undeniable, but myths around digital assets not being ESG friendly and its utility for money laundering continue to be blown out of proportion.
Managing director Ravi Menon also reiterated its stance on cryptocurrencies’ speculative nature and their risks to retail investors.
Asset owners, private and retail investors are still reeling from the volatile domino effects of the deeply interconnected crypto industry which saw $1.3 trillion of its total market cap wiped out this year.
According to the report, institutional investors should look for exposure to blockchain technology and its applications, since cryptocurrencies are neither currency nor precious metal substitute.
A White House executive order to lay out a national policy for digital assets should help boost credibility for cryptocurrencies, but concerns that decentralised finance technology can help evade sanctions still lingers for policymakers and investors.
The year 2021 was a big one for cryptocurrency, filled with new milestones and historical developments, but major asset owners are still keeping the emerging asset class at arm’s length.
With flexible mandates and long-term horizons, family offices are increasingly looking for exposure to digital assets, but the sector is still clouded by volatility.
Investors tempted to utilise ETFs to access the cryptocurrency market are not necessarily getting what they might expect. The advice is timeless ... only invest what you can afford to lose.