In the first of a two-part series about the rise of token technology, experts outline aspects of blockchain-enabled securitisation of assets that could appeal to large investors.
The latest run-up in the price of Bitcoin has sparked more interest in digital tokenised investments, particularly among wealthy families and individuals.
For the Year of the Ox, AsianInvestor offers predictions on some key market developments. Today: Will cryptocurrencies finally gain favour with asset owners?
The development of institutional grade financial infrastructure such as exchanges and custody arrangements has made digital assets more accessible to traditional fund houses, ETF issuers and other types of investors. Yet more consideration is needed about how to allocate to these assets and also mitigate the risks.
Despite some evidence of rising asset owner interest in the likes of Bitcoin, two large institutional investors have their doubts about investing directly into such assets.
The end of the first great cryptocurrency boom is a good time to assess the operational due diligence of the first wave of Asian cryptocurrency funds, say industry experts.