Why are the world’s largest asset managers like BlackRock, Fidelity and Morgan Stanley getting into digital assets now?

Because we are at a turning point: The use of blockchain technology is growing exponentially and at the same time the market is becoming increasingly institutionally accessible. This combination creates a unique investment opportunity with above-average return potential.

How do digital assets work?

Digital assets are values stored on blockchains that can be transferred directly, securely and globally – without banks or other intermediaries. Blockchains themselves are the underlying infrastructure with decisive advantages. They are immutable, resistant to censorship and enable transactions with immediate settlement. This makes the transfer of value more efficient, minimizes counterparty risk and makes access to financial processes more transparent.

Why should banks, asset managers and family offices take the asset class seriously?

The financial world is changing rapidly. Blockchain-based products are challenging existing structures. Institutional investors and regulatory authorities are increasingly establishing clear framework conditions, making digital assets more important as an asset class to be taken seriously. Those who position themselves early can tap into new sources of income and retain their clients with innovative investment solutions that will become part of the standard allocation in the long term.

What processes are needed for handling digital assets?

With increasing regulatory clarity and improved accessibility, the focus is shifting from “digital assets – yes or no?” to the optimal allocation within this asset class. Asset managers who establish a clear strategy and processes at an early stage can provide their clients with targeted advice and position themselves as innovative market participants. A professional approach includes structural integration, regulatory compliance and continuous support to guide clients safely through the investment process.

How should digital assets be weighted in the portfolio?

Digital assets have already achieved above-average risk-adjusted returns with a low weighting and have noticeably improved the diversification of a portfolio. We expect this trend to continue and recommend a weighting of 2-5%, depending on the risk profile, with an investment horizon of at least 24 months in order to make the most of market cycles.

Digital assets can be categorized differently depending on their focus: Bitcoin is often seen as the digital equivalent of gold. Other blockchain projects, on the other hand, tend to fall into the technology investment category, comparable to growth stocks or venture capital, as they offer similar network effects and innovation potential.

What are the risks associated with this new asset class?

Like every asset class, digital assets also entail specific risks that need to be carefully analyzed and managed:

• Market volatility: High price fluctuations can offer opportunities, but also require a robust risk strategy.
• Regulatory uncertainty: Legal framework conditions continue to develop, which can have an impact on trade and taxation.
• Liquidity risk: Not all digital assets can be traded in liquid form at all times, which can be problematic in volatile market phases.
• Operational risks: Improper safekeeping or errors in the infrastructure can lead to capital losses.

A sound approach with clear security and compliance strategies minimizes these risks and creates the basis for sustainable investments. Anyone who wants an experienced and regulated expert on their side can contact us at any time: info@da.solutions.