Crypto Assets are a relatively new asset class very different from traditional asset classes but one that can add real value as an uncorrelated source of returns. Nickel Digital has just recently finished an analysis reflecting an impact of 1%-3% allocation to Bitcoin within a standard 60% equity / 40% fixed income portfolio. The findings (over a statistically significant 8-year period) indicate that such a controlled allocation not only boosts performance of the underlying portfolio, but also improves Sharpe ratio, thus resulting in a more efficient portfolio construction.
Background2020 was the year Crypto went Institutional and with some of the large institutions investing into Crypto including Private Banks, Asset Managers and wealth managers, we will discuss the fundamental drivers behind this market to help wealth managers understand the role of digital assets in portfolio construction. We will examine where this market is going, what are the opportunities and associated risks.
What to Expect – Questions we will covering:Q - Define our terms: How best to understand what Bitcoin is?
Q - Why does the market exist, what’s driving it and how?
Q - Why wealth management clients should consider digital assets and how can they be part of portfolios?
Q - What challenges exist for private bankers and wealth managers in handling this business, such as around custody, settlement, regulatory controls?
Q - Looking at the price of Bitcoin, are we top of a hill or a bottom of a mountain?
Webinar Objectives
- To clearly define and explain Crypto Assets and achieve a clear understanding of this asset class
- Discuss the benefits it can give a client portfolio, while assessing the risks and trying to reduce these
- Offer a discussion forum for questions related to this asset class