Crypto – Relevant in wealth management?

Looking for statistics on the status quo of the crypto market or predictions on its further evolution? Here are some articles and thoughts on it.

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The Wall Street Journal: Fidelity to Allow Retirement Savers to Put Bitcoin in 401(k) Accounts

Fidelity Investments is the first major retirement plan provider planning to offer investors the option of including Bitcoin accounts in their 401(k)s. The 23,000 companies that have their retirement plans managed by Fidelity will have the option to include Bitcoin in their offerings. The decision by the nation's largest retirement plan provider shows that crypto investing continues to move into the mainstream, but it remains to be seen whether employers will offer it to their employees.

"There is a need for a diverse set of products and investment solutions for our investors," said Dave Gray, head of corporate retirement offerings and platforms at the Boston-based firm. "We fully expect that cryptocurrency is going to shape the way future generations think about investing for the near term and long term."

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Yanus Tech: How Crypto elevates Wealth Management

The digital asset industry has grown from a valuation of $100 billion in 2019 to a market capitalisation of more than $2.5 trillion today. It is commonly assumed that this growing popularity of digital assets and technologies in wealth management is accompanied by a declining relevance of wealth managers and advisers to clients. The author of this article is convinced of the opposite - namely, that cryptocurrencies and technology are actually making wealth managers more important to their clients. He backs up this thesis with a variety of statistics and research findings.

Some of the most important findings:

• 31% of wealth management clients believe that technological advances will strengthen the role of wealth managers in the future
• 41% are willing to pay more for better and more personalised advice
• 29% (and 44% of Millennials) believe cryptocurrencies will have the biggest positive impact on the financial market

"Wealth Management and Private Banking is and always will be about the personal relations and trust. However, given the pace of development and impact of the technology on our lives and the financial sector, wealth managers will have to embrace themselves in a new technological solution to meet the new clients expectations. The clients still want to turn to wealth manager for the financial and crypto advise and are willing to pay more for the right answers."

For more insights, take a look at the article.

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Coinbase: Coinbase Crypto Report - Europe 2022 H1

Drawing on a total of 6115 respondents from France, Germany, Italy, the Netherlands, Spain and the UK, the Coinbase Crypto Report Europe 2022 H1 (CCRE) analyses the behaviour and investment climate of crypto asset owners in Europe in the first half of 2022.

Some key findings are:

• The popularity of crypto-assets is increasing significantly. Between 2019 and 2021, 60% of surveyed crypto asset owners entered the market for the first time. The average annual growth rate of 32% indicates significant further growth in the coming years.
• In the next twelve months, 56% of crypto asset owners plan to increase their crypto holdings. This intention is particularly pronounced in the 18-39 age group.
• Bitcoin, Ethereum and Binance Coin are most popular. Bitcoin, the most important cryptocurrency by market size, is held by 69% of investors. However, Ethereum has also gained significant market share, catching up with Bitcoin, and is now found in 45% of portfolios.
• The first-ever release of the Coinbase Crypto Sentiment Index (CCSI) shows a positive climate within the crypto market and signals an optimistic outlook on the crypto market by market participants.

"The way in which the sentiment around crypto-asset evolves - and why it does so - is relevant for the entire industry. This is where the CCSI can provide a lot of value," comments Prof. Dr. Philipp Sandner, Head of the Frankfurt School Blockchain Center.

For more information and details, take a look into the report.

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