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.

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