When digital assets were first introduced, many saw the industry as speculative with no real-world use case. Traditional financial institutions even viewed the asset class as nothing but a scam. Now, after facing numerous challenges, we are witnessing the gradual integration of digital assets and blockchain technology into our broader financial system. The industry is now seen as an asset class on the brink of maturing and transforming our lives. But how is this integration taking place among financial institutions?
After two years of downward-moving markets, the digital assets industry emerged from its crypto-winter in 2023, resulting in significant returns of over 100%. Now, in 2024, various events have unfolded or are unfolding, leading us to believe that 2024 will be a strong year for digital assets.
Furthermore, we see our current market cycle as one of the last genuine opportunities to enter the market before it matures.
Over the years, the market has witnessed a shift among asset managers as more are starting to integrate digital assets into traditional investment portfolios. The message that digital assets are here to stay is resonating, and more investors and businesses are understanding their potential and the impact they will have in the upcoming years.
We already observe that an allocation as small as 1% can significantly improve the risk-return profile of an investment portfolio.