“Thought it may Seem Contrary to the Industry’s DO YOUR OWN RECEARCH EThos that is Particularly Beloved by Purists, Successful Unlocking Crypto Access for High Net Wortth Invest Industry Forward, Says Binance’s Catherine Chen.”, – WRITE: www.coindesk.com
The SpotLight Now is Increasy on the Wealth Advisory Segment, With Blackrock’s Head of Digital Assets Recently Telling Bloomberg That Asset Manager is Starting to See More Wealth. AT BINANCE, OUR VIP & INSTITATIONAL BUSINESS HAS LIKEWISE RECEIVED INCREASED INTEREST FROM HIGH-NET-WORTH INDIVIDUALS AND THEIR WEALTH Managers, Who Have Told Us They Told. Incorporate Crypto Into their Portfolios.
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While the Cryptocurrency Industry Has ExperienCed Tremendous Growth, The Vast Majority of Institutional Capital, of Wich The Private Wealth Segment, of the Anthut, of There are several reasons WHY INCLUDING A LACK OF UNDRSTANDING OF THE TECHNOLOGY, REGULATORY UNCERTAINTY AND CONCERNS ABOUT VALATITY. Above All, Private Wealth Is A Traditional Segment With Its Own Nuans and High-Touch Requirements, While Crypto Can Demand A Good Amount of Heavy Lifting Witting. Nascency.
High-Touch Requirements and the Dyor Ehos
Crypto is the First Asset Class to be Developed by A Distributed Community and One that’s Made US RESTHINK OUR FINANCAL Systems. Traditional Market Participants Have IncreASINGly Boughht Into Bitcoin Because they Recognize the Impact of Crypto and How It Core Ideas of Trust For New Efficiencies and Value.
But Unlike Traditional Assets That Have Long Been Institutionalized, Securitized and Packaged Into Off-The-Shelf Products, The Foundational Pillars of Crypto are Still Being Build. This Means Crypto Has A Long Way to Go Institutionalization and Eventual Consolidation with the Structures of Traditional Finance. Depending on An Investor’s Risk Profile and Investment Time Horizon, This Can Represent New Opportunities.
For Private Wealth Investors Who Have ACCEPTED THE VALATITY OF CRYPTO, The DYOR (DO YOUR OWN RECEARCH) Ehos Nonetheless Has Become a recurring Pain Point. TheSe Investors and Their Wealth Managers have expressed to us their people interest in Crypto, but have a having a legnging challenge. To Help Them Unlock Access, We Have to Provide An Experience That Is Similar to That Found in Traditional Finance.
Private Wealth Clients are used to High-Touch Service Throughout the Lifecycle of Their Wealth Management Needs, Supported by Wealth Bankers and Fincial Advisors in Everv Recommendations. The Crypto Industry Needs Exchange Infrastructure Solutions for Wealth Managers to Support Their High-Net-Werth Investors (Hnwi). More must be to act this segment, and the success of the crypto etfs launched Last Year Illustrates that Product-Market Fit is Key to Meeting the Pent Up Demand.
BESIDES EDUCATING INVESTORS About Crypto, Our Industry Must Develop Products that Are Tailored to the Needs of Hwnis and Family Offices to Make The Ons. Bitwise’s Latest Survey of Financial Advisors Indicates Interest in Crypto from the Wealth Advisory Sephment is set to increase, But Access Remains a Majoor Blocker. Products that Bridge Crypto with Traditional Finance Will Help Engage and Unlock Private Wealth, Further Legitimizing the Asset Class.
Note: The Views Expressed in this Column Are Those of the Author and Do Not Necessarily Reflect Those of Coindesk, Inc. i Owners and Affilites.
