It’s Time to Explore the Crypto Multiverse
Cryptoassets have matured. From a fringe preoccupation of tech specialists and frontier financiers just a few years ago, they have evolved into an increasingly mainstream phenomenon.1 Crypto-based ETFs, cryptocurrency lending products, direct crypto investment funds, and a host of crypto-linked options have attracted billions of dollars in capital inflows as investors search for yield, inflation-beating growth, and diversification.2
It’s time for advisors to get involved.
The Crypto Revolution is Here
In recent years, investors across the U.S. poured money into cryptoassets, attracted by rapidly rising prices and the promise of a financial technology revolution.
As recent events have shown, however, cryptoassets—like all other assets—come with risks, and there are many points to consider when investing.3 Often, investors are not fully aware of all the potential risks they may face, or of the proper place of cryptoassets in a balanced portfolio.
For advisors, therefore, it is becoming increasingly important to understand the crypto multiverse and its associated risks and opportunities. A growing number of clients, particularly younger ones, already have sizable cryptoasset portfolios and advisors must be prepared to discuss these investments and how they fit into a broader long-term financial plan. Advisors must also be ready to advise clients who have yet to enter crypto markets but are interested in doing so.
While some advisors are well-versed in the crypto space and prepared to guide clients, many others have only a limited knowledge of this emerging asset class. For such advisors, this microsite offers an overview of the key aspects of cryptoassets, their investment potential, and important risks to consider.
1 iCapital. 2021 – A Breakout Year for Cryptocurrency Performance and Adoption. September 23, 2021.
2 Deloitte. Cryptoassets – A rising new asset class? April 16, 2021.
3 IMF. Crypto Boom Poses New Challenges to Financial Stability. October 1, 2021.
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