By most standards, the past decade has been an investor’s paradise. After a cataclysmic market drop and subsequent global recession in 2009, the stock market is continually posting incredible gains, the real estate market roared back to life, and entirely new investment opportunities have diversified the investment field.

 

Most notably, the emergence and expansion of digital currencies like bitcoin and hundreds of others like it has presented investors with a compelling asset class that is both novel and opportunistic.

Interestingly, enthusiasm for crypto assets has created a need for additional financial services as novice and experienced investors alike pursue this relatively new market, creating demand for supportive services including long-term financial planning and near-term investment strategies related to cryptocurrencies. Therefore, companies like TrustVerse, Protos, and Digital Capital Management are building platforms that are striving to meet this demand.

The Expansive Crypto Economy

While bitcoin has been around for nearly a decade and several other prominent tokens have existed for several years, the market boom is relatively recent.

Throughout 2017, the return on investment on crypto assets was cartoonish, the equivalent of stats on a video game. Day after day brought new market highs, and these gains were not slight. As many have noted, by the end of the year, the price of bitcoin would come close to $20,000, an incredible jump for an asset worth less than $1,000 at the start of the year. Not to be left out, other digital currencies gained value as well, expanding by thousands of percent as 2017 progressed.

At the same time, burgeoning crypto investment space created an opportunity for new, ancillary financial products related to digital currencies. For example, more than 200 hedge funds crypto-focused hedge funds have emerged in the past several years, bringing a pillar of the traditional financial system into the crypto community.

At the same time, financial institutions are showing an increasing willingness to create products for interested crypto investors. Several institutions including Cboe, CME, Goldman Sachs, and Morgan Stanley offering bitcoin futures contracts, and the highly anticipated bitcoin ETF is expected sometime in the not too distance future.

The Role of Crypto Asset Management

Taken together, there is now a robust crypto investment scene, but it’s one that remains mostly unchartered and is still susceptible to dramatic value or sentiment swings.

As a result, there is a growing market for crypto asset management services. People want the kind of financial guidance and investment protection available to investors in traditional markets. They want to invest in crypto, but they want protection from extreme volatility and unnecessary risk, and several companies are striving to fill the void.

TrustVerse, a blockchain-based wealth management platform, is helping investors identify risk and diversify their investments appropriately. Using the power of AI and deep learning algorithms, TrustVerse not only helps investors with estate planning related to crypto assets, but it helps them establish a low-risk crypto portfolio that produces profits even during times of extreme market volatility.

Indeed, the market turbulence that frequently defines crypto markets is exhausting for investors. As Jim Smigiel, CIO of absolute return strategies at SEI Investments Co., told CNBC, “Looking at something with such high volatility all the time is not conducive to an investor's mental health.” With TrustVerse, investors can harness the computational power of AI to create a more stable and profitable investment strategy while avoiding the headache of the always-in-flux crypto markets.

Meanwhile, other companies like Protos and Digital Capital Management are offering more traditional advisory services including merchant banking and professional fund management. In an industry dominated by a DIY ethos, these companies bring institutional knowledge and attention to crypto investment. 

By professionalizing the movement and providing seasoned investors with quality tools for growing and diversifying their wealth, these companies represent the latest installments in the cryptocurrency movement.

Cryptocurrencies are an inclusive asset class. They are available to just about anyone, and their novelty means that the playing field is significantly more level than it is in traditional markets. However, even in this modern environment, investors don’t have to navigate this new investment class alone. They can turn to qualified professional platforms with innovative and capable technology that can support their investment initiatives on an individual basis.