Crypto Is a New Asset Class That People Can’t Ignore – Featured Bitcoin News

An executive at Wisdomtree, an asset management firm with $78 billion under management, says that “Cryptocurrencies have firmly established themselves as a new asset class and it truly is something that people can’t ignore.” He added: “We are past the point where there is speculation around whether or not this is a trend that’s here to stay.”

Wisdomtree’s Executive on Crypto

Jason Guthrie, head of digital assets for asset management firm Wisdomtree in Europe, talked about cryptocurrency during Ftadviser In Focus’ fireside chat Monday.

Wisdomtree (through its affiliates in Europe and the U.S.) is an exchange-traded fund sponsor (ETF), exchange-traded products (ETP) manager and asset manager. The company’s New York headquarters can be reached at 212-802-6601. It offers products that cover equity, commodity fixed income, leveraged, inverse, currency, crypto, and other strategies. Wisdomtree manages more than $77.8 trillion in assets worldwide, according to the U.S Securities and Exchange Commission.

Guthrie said, “We are past the point where there is speculation around whether or not this is a trend that’s here to stay,” emphasizing:

Cryptocurrencies have firmly established themselves as a new asset class and it truly is something that people can’t ignore.

According to him, investors will be more selective in choosing service providers according to their access to digital assets.

The Wisdomtree executive added that many platforms are evolving strongly towards a “multi-blockchain future” with an emphasis on interoperability. He also noted that this has “broadened out the investment universe for a lot of people because it … means you’ve got opportunities to put capital to work against a variety of protocols.”

The crypto market is volatile because of uncertainty regarding the evolution of cryptospace over the coming decade. Guthrie stated that this is something investors should keep in mind as they invest in this new asset type.

“I don’t think anybody is out there advocating 50% of somebody’s portfolio should be in cryptocurrency. This is how you account for risk, by making risk-assessed allocations,” he opined. According to his asset management firm, people can allocate between 1% and 5 percent of their portfolios in crypto under a risk-adjusted strategy, which is similar to the way they handle other asset types.

Guthrie responded to the question “Coins could be mainstream”:

Absolutely … We are already on the path to doing that.

He added, “2% or so of the global population is involved in crypto at the moment, that’s only going to grow.”

What do you think about the Wisdomtree executive’s comments? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.