An executive at Wisdomtree, an asset management company with a $ 78 billion management company, said that “Cryptocurrencies have become a new asset class and are absolutely unthinkable for people.” He added: “We’re past the point where there’s speculation about whether this is a trend that’s going on here.”
Wisdomtree Executive at Crypto
Jason Guthrie, head of digital assets for asset management company Wisdomtree in Europe, spoke about cryptocurrency during a Ftadviser In Focus fireside conversation on Friday.
Wisdomtree, through its subsidiaries in the U.S. and Europe, is an exchange-traded fund (ETF) and exchange-traded products (ETP) sponsor and asset manager headquartered in New York. The company offers products that include equities, commodities, fixed income, leverage and inversion, currency, cryptocurrency, and alternative strategies. Wisdomtree now has more than $ 77.8 billion in assets managed globally, according to the most recent filing with the U.S. Securities and Exchange Commission (SEC).
Guthrie said, “We have come through a point where there is speculation about whether this is a trend that will remain there,” he stressed:
Cryptocurrencies have established themselves as a new asset class and are absolutely completely ignored by people.
He explains that investors will prefer service providers based on their ability to gain access to the digital asset market.
Wisdomtree executives added that many platforms are rapidly evolving into a “multi-blockchain future” with an emphasis on interoperability. He also noted that this “expands the world of investing for a lot of people because … it means you have the opportunity to invest against a variety of protocols.”
However, uncertainty about how the crypto space will evolve over the next decade has led to high volatility in the crypto market. Guthrie stressed that investors need to keep this in mind when investing in this new asset class.
“I don’t think that someone who owns 50% of someone else’s portfolio should be in cryptocurrency. This is how you determine risk, by making risk -assessed allocations,” he said. Her asset management company sees people investing between 1% and 5% of their portfolios into crypto as part of a risk -adjusted approach, similar to the way they treat other asset classes, she says.
Answering questions about whether crypto could be mainstream, Guthrie stressed:
Really … We’re already on our way to doing that.
He added, “2% or more of the global population is involved in crypto now, which will only grow.”
What do you think about the Wisdomtree executive’s comments? Let us know in the comments section below.
Image Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not advise on investment, tax, legal, or accounting. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
