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​Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

    • 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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