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Nov 15, 2018

Why Should Digital Assets Be An Asset Class?

Why Should Digital Assets Be An Asset Class?

“It’s not every day, or every decade, that an entirely new asset class is born. Yet, through a combination of computer science, cryptography, economics, and network theory, digital assets have arrived and are proving that they are an asset class unlike any other. "

– Matt Beck, Grayscale Investments


Cryptocurrencies hold unique investment attributes similar to traditional assets like gold, with qualities such as durability and scarcity, and also function like cash, being spendable directly on goods and services with a wide acceptance among merchants including major players like PayPal and Microsoft.


The technology behind these assets continues to evolve, promising potential for wealth preservation and growth. Additionally, their low correlation with other financial markets suggests that they can provide portfolio diversification with uncorrelated returns.


Access the full report to understand the benefits of investing in cryptocurrencies, discover the potential advantages of adding an allocation to your portfolio, and learn why digital asset management funds offer a safer and more convenient investment option for traditional investors.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Introduction to Digital Assets

  • Why Invest in Cryptocurrencies?

    • Store of value characteristics

    • Spending characteristics

    • Growth characteristics

    • Low correlation with other markets

  • Hypothetical Simulated Portfolio Risk & Return




Thanks to our Contributor

Grayscale

Established in 2013 by Digital Currency Group, Grayscale is a leader in digital currency investing. Grayscale provides secure access and diversified exposure to the digital currency asset class.


Grayscale Investments offers nine private placement products, which allow institutions and accredited investors to access individual digital currencies through the form of a security (Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, XRP, Litecoin, Zcash, Zen). Grayscale also offers a diversified index fund, Digital Large Cap Fund, which provides exposure to the top digital assets based on a rules-based portfolio management process, which is reevaluated quarterly.




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