Cryptocurrency - too big to ignore?

The recent approval by the US Securities and Exchange Commission (SEC) of bitcoin spot ETFs has reignited discussions around cryptocurrency. Although a significant development for bitcoin, it has, rather unsurprisingly, not changed our views on the subject. Cryptocurrency is still not a suitable on menu asset class due to its volatility, slow transactions, lack of liquidity and not to mention the numerous scandals that have occurred within the industry.

Nevertheless, the cryptocurrency market is substantial, with a total value of around $1.71 trillion, indirectly impacting diversified portfolios through companies with exposure to the sector. For evidence based, diversified portfolios, it can be seen as an advantage rather than a risk as it positions investors to potentially benefit from future innovations in blockchain technology without being overly exposed to the risks associated with cryptocurrencies.

Download Insight Issue

AcuityINSIGHT: How much is enough of a good thing?Most of us can think back to our childhoods and remember a time when we ate too much ice-cream, the moment from feeling wonderful to feeling sick, so is there a point at which you can have too much of a good thing when it comes to index investing? In this issue we look into why to keep spooning in t

AcuityINSIGHT: Tempering FOMO and regret through diversificationIn this issue we look at why diversification matters because investors own portfolios today for the future and given that markets do a pretty good job of incorporating information into prices, we have no forward-looking insight into which company’s shares are going to outperform. We can avoid both

AcuityINSIGHT: Make your investment bed and lie in it!The reality is that markets work pretty well at incorporating information into prices and trying to beat the market – through either market timing or stock picking - is a tough game, with very few winners. Simply making your investment bed out of a diversified market exposure and lying in it over

Cryptocurrency - too big to ignore?

Quick links

Contact us