Understanding crypto fund management
A digital asset is intangible and is stored in a digital format. It includes cryptocurrency and crypto tokens, such as Bitcoin and Ethereum, NFTs etc. Recently there is a trend in which influencers and celebrities create and sell NFTs, contributing over 10,000 different cryptocurrencies worldwide. As a result, this creates new investment opportunities for investors. As crypto-assets’ values are not related to any economic fundamentals, they are eminently volatile as compared to shares and bonds. This is noticeably in Bitcoin which fluctuated 17.94% in the past 6 months. In order to raise public awareness of the risks of investing in crypto-assets, MAS has issued numerous consumer advisories.
One of the main reasons why crypto-assets are gaining popularity around the world is that their fees are relatively low, which makes it easy to buy on a crypto exchange. Not only that, crypto-assets are not associated with world governments which makes them attractive to investors. Investors see the potential for profit in the long run.
With the growing popularity in crypto-assets, it is vital to entrust a trusted crypto asset management to manage and diversify investment portfolio. Unlike the conventional asset management, Crypto asset management is a new trend of monitoring, trading digital assets on blockchain technology. It is constantly evolving with the goal to effectively optimize the value of crypto investments. Leveraging on crypto asset management’s knowledge and expertise, both quantitative and qualitative aspects are deliberately taken into account in portfolio diversification and risk management. Support is provided to tackle the constant revision of MAS rules.