The head of Wisdomtree, an asset management company with $78 billion under management, says that “cryptocurrencies have firmly established themselves as a new asset class, and it really is something that people can’t ignore.” He added: “We’re past the point where there’s speculation around whether it’s a trend that’s going to stay.”
Wisdomtree executive on cryptocurrencies
Jason Guthrie, head of digital asset management at Wisdomtree Asset Management in Europe, spoke about cryptocurrency during a Ftadviser In Focus talk on Monday.
Wisdomtree, through its U.S. and European subsidiaries, is a sponsor of exchange-traded funds (ETFs) and exchange-traded products (ETPs) and an asset manager headquartered in New York. The company offers products covering equities, commodities, fixed income, leveraged and inverse, foreign exchange, cryptocurrency and alternative strategies. According to its latest filing with the SEC, Wisdomtree currently has more than $77.8 billion under management.
Guthrie said: “We’re past the point where there’s speculation around whether this is a trend that will remain,” stressing:
Cryptocurrencies have firmly established themselves as a new asset class, and it really is something people can’t ignore.
He explained that investors will increasingly choose service providers based on their ability to access the digital asset market.
The Wisdomtree executive added that many platforms are actively evolving toward a “multi-blockchain future” with an emphasis on interoperability. He also noted that it has “expanded the investment universe for a lot of people because it … means you have the ability to invest in different protocols.”
However, uncertainty about how the cryptocurrency space will evolve over the next decade has led to high volatility in the cryptocurrency market. Guthrie stressed that investors need to keep this in mind when investing in this new asset class.
“I don’t think anyone out there is advocating that 50% of someone’s portfolio should be in cryptocurrency. That’s how you have to consider risk by allocating risk-adjusted funds,” he believes. He said his asset management company sees people allocating 1% to 5% of their portfolio to cryptocurrencies as part of a risk-based approach, similar to how they treat other asset classes.
When asked if cryptocurrencies could become mainstream, Guthrie affirmed:
Absolutely… We’re already on our way to that.”
He added: “Currently, 2% or so of the world’s population is involved in cryptocurrencies, and that number is only going to grow.”
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