However, high-net-worth investors (HNW investors) continue to be interested in investing directly straight into the asset class, according to the latest statistics of the global wealth managers survey from GlobalData published on October 13. Sergel Woldemichael, the Senior Wealth Management Analyst at GlobalData, commented: There are roughly 21,000 different cryptocurrencies now in the market; thus, investors have a wide variety of assets to choose from. Direct investment has the highest level of risk, comparable to that of other securities (and thus the most reward).
Crypto ETFs provide an additional degree of protection
In light of this, both established and up-and-coming businesses are now offering customers protection in the form of cryptocurrency funds or ETFs like Bitcoin ETFs. ETFs also provide an additional degree of protection for investors, making it less likely that their accounts would be hacked or that they will lose their funds because they forgot their passwords. Woldemichael added: Even while there are still money managers who are skeptical about bitcoin and its future, consumer demand has pushed the hands of major firms. Woldemichael notes that it is crucial for businesses that want to keep as much of their clients’ capital as possible to provide both a direct path into investing in cryptocurrencies and an option to invest via a fund. This would also ensure that customers’ sensitive information is stored more securely and there are more chances to avoid cybercriminals attacks. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
