The industry frameworks to support the growing demand for investment in digital assets is developing fast. Experienced service providers and managers in this arena are giving investors the reassurance and guidance they require. This report details some of the key developments in the industry as well as considerations investors exploring the space should keep in mind.
As more institutional investors buy crypto currency and digital assets, the need to provide the highest level of custody and safekeeping remains essential, given their focus on counterparty risk. Their growing presence in the space also means it is becoming more important for this group to feel more comfortable with the prime service-like offerings available.
Sizing a digital assets allocation correctly is one of the most strategic and challenging decisions institutional investors need to make when considering an investment in this asset class. Being judicious in their manager selection process and understanding the risks and complexities of this maturing asset class will also provide a boon to institutional adoption of crypto and digital assets.