'There are several main ways investors can access this potential while avoiding the high volatility and regulatory risks of holding bitcoin or rival cryptos.” cryptocurrency $BTC
Switzerland’s largest bank, UBS, has suggested some investment strategies for investors seeking to gain exposure to crypto assets with less risk than investing directly in bitcoin, ether, or other cryptocurrencies. “There are several main ways investors can access this potential while avoiding the high volatility and regulatory risks of holding bitcoin or rival cryptos,” the UBS analysts explained.
The UBS report details: “The first is that it provides an effective form of diversification from traditional financial assets, such as equities … Second, it is getting harder to see cryptos as a form of ‘digital gold’ that provides protection against elevated inflation.” We see a range of possible applications — from financial services and healthcare to luxury goods — leading to a potential USD 1 trillion boost to global GDP over this decade.
The first strategy the analysts suggested is to invest in companies that build the necessary infrastructure for the crypto ecosystem, citing that they are likely to benefit from the more widespread use of distributed ledger technology applications.