By Business & Finance 
When Tim Cook and Elon Musk tell you that they own crypto then we know that there is a long term outlook for the sector. Jillian Godsil looks further into the value of crypto assets as investments.
Note: This piece was originally published in Business & Finance magazine, vol. 59, no. 1, available to read, with compliments, here.
When Tim Cook and Elon Musk tell you that they own crypto then we know that there is a long term outlook for the sector. These high worth individuals and long term thinkers, may even consider HODLing to send the next generation to the moon. However, many wealth managers are suffering with a knowledge gap and there is a steep technical learning curve required to navigate the volatility seen in previous bear markets and capitalise when the bull starts running.
The exponential returns are too enticing to ignore, making Institutional investors acutely aware of the long term value of the crypto currency markets. Invictus Capital helps investors gain more exposure to the markets. For them, “the focus needs to be on benefiting from disruptive innovation and advanced blockchain technology. As leading retail investors in the crypto markets our portfolio assistants are perfectly positioned to guide wealth managers and family offices in how, where and when to invest in various digital assets” says Haydn Hammond, Head of Institutional Investments.
Meeting client demand
In recent months there has been an explosion in the world of DeFi services. From DAPPs, to staking, to the world of NFT’s, there seems to be endless innovations in the digital assets for financial services. The term crypto-curious is now regularly used to describe investors that are dipping their toes into cryptocurrencies. Some advise contributing 5% of overall portfolios. However, as the crypto assets mature they have seen increased adoption and an influx of projects building underneath them which steadily adds to their worth.
If you are not willing or not interested in researching the markets but would like to capitalise on the performance then partnering with an expert is a wise choice. We are seeing portfolio diversification lead to considerable returns every quarter. Having a holistic approach to your allocation of investment in crypto assets will stand the test of time”, says Haydn Hammond, Sales Director of Invictus Capital.
As investors pivot quickly towards increased crypto exposure, navigating the post pandemic world that has been disrupted by technology will be exciting for individuals and institutions who have diversified their portfolios.
A new portfolio for a new generation
Adapting and adopting to meet the needs of a new Web 3 client will be key to the success of projects in the near future. With 2 million daily active wallets reported by DappRadar in October, it is now an industry of its own, widely respected and the technology is still advancing at lightning speed. This is pretty clear within the arena of DeFi services but also applies to traditional investors, many of whom are yet to realise that unless they learn the key components of cryptocurrency trading they won’t be able to meet or facilitate client demand in the future.
The vast majority of financial services markets around the world have slowly but truly woken up to the opportunities offered by blockchain technology. What may have once been considered a short term trend is now a long term opportunity with some of the most fascinating Web 3 technology emerging from the cryptocurrency bubble.
According to Hammond, Head of Institutional Investment at Invictus Capital, “Many Investors, clients and Family Offices with large portfolios are now fully aware of the long term returns offered by diverse crypto Funds. Furthermore our C10 and C20 Funds have consistently performed for clients over the last 5 years.”
DeFi products, NFTs and gaming are three factors driving increased awareness and interest in the space.
“We are seeing new crypto projects emerge every week. It isn’t just the tokens people want, it is about being part of the ecosystem and thriving with a vibrant and wealthy community.”
Navigating the world of DeFi and Crypto assets
The scepticism that was once rife across the traditional banking institutes has now been replaced with optimism and a yearning to develop a deeper understanding of the major facets offered through DeFi services. However, there is a broad knowledge gap and this is hindering adoption of a cohesive approach to the best performing crypto assets.
Many traditional investors acknowledge that Bitcoin is the ‘gold’ equivalent in the crypto industry. However, the monopolist view ignores the reality that at least 20 other crypto assets offer alternative investment opportunities. Ethereum, LTC, ADA, SOL, DOT and MATIC are now all part of massive ecosystems of innovative DeFi products and other use cases for these cryptocurrencies.
In addition, many of the projects being built underneath these layer 1 and 2 blockchains have their own tokens that are strengthening the overall sector.
Heading towards a cashless society
The ongoing pandemic, Covid 19, fast tracked the need for virtual currencies and played a large part in the adoption of crypto and DeFi products today. With the virus in the air, physical currency became both dirty and dangerous.
Mainstream apps like Revolut and centralised exchanges like Binance are leading the way to provide easy ways of paying, sending and receiving crypto payments around the world. With this ease of transition from fiat to crypto, the general public is getting Increased exposure to the crypto markets via trusted platforms that are already working within many of the mainstream financial markets.
As investors pivot quickly towards increased crypto exposure, navigating the post pandemic world that has been disrupted by technology will be exciting for individuals and institutions who have diversified their portfolios.
Although dynamic with high returns, investors must also assess the security risks associated with cryptocurrency investments. Partnering with a third party or developing a vetting process for exchanages in the future will be key.
“As a third party partner for a range of institutional investors and advisors we are aware of the key concerns around market volatility and security. However with stringent due diligence and an expert team of data analysts we effectively manage the fluctuations and ring fence investments for the right allocation of crypto assets,” says Hammond.
Jillian Godsil is an award winning journalist, broadcaster and author. She specialises in Blockchain and her latest book can be found at https://persons-of-interest.io/
