About two years ago published an article about what digital assets are and how at some point they have the opportunity to become part of any serious investment manager portfolio. Financial services and especially the asset management industry are not the fastest to innovate, adopt new technology or embrace change. The good news is things are changing, faster than usual. Not only, Julius Baer a major Swiss bank, has started offering digital assets to their clients, but a new research report published by Fidelity International has found that already 22% of institutional investors have already an exposure to digital assets. What has been particularly interesting for myself from the Fidelity medium post are the findings that:
- 47% of the respondents see digital assets as a technology play
- 46% find that the most appealing characteristic of digital assets is that have low correlation with other assets
- 74% of financial advisers and 80% of family offices view the characteristics of digital assets most favorably.
For myself personally, this is no news, however the data starts to confirm the qualitative trend that many finance professionals have already noticed – crypto or digital assets will become part of institutional portfolios. The asset management industry will have to accommodate these changes coming from both technology advances and investor demand outpacing the speed with which investment managers can adapt to technology change. Institutional engagement is getting traction. Soon we will a number of institutionally backed fintech platforms which will allow shifts between crypto and traditional asset allocation to happen in an easier cost efficient and transparent manner.
About the author
Boris Grozev is a seasoned fintech executive. Entrepreneur by heart Boris has helped number of businesses to create and implement business development and product strategies. His advisory work in Emerging and Frontier markets has promoted culture and technology change, fostered innovation and lead to tangible results. He invests in variety of asset classes. Boris is a fast learner, whose leadership abilities, ambition, stamina, passion to succeed and attitude naturally spread to others helping to achieve common goals.
