Crypto mcap potential to rise 5-fold by 2030, wealth managers to play a vital role
3 min read . Updated: 09 Jun 2022, 05:23 PM IST
Premium- As per the BCG report, two-thirds of clients who sourced their crypto investment with third parties said that they did so because they didn’t think their wealth managers offered such services.
Despite having more than a $1 trillion market cap and being always in the headlines, it is safe to say that crypto markets have a long way to go toward becoming a significant investment option. There is a lack of knowledge of the crypto market and widely investors are hesitant to accept these virtual assets as a medium for investments. Investors do need a proper advisory and education on cryptocurrencies. Thereby, wealth managers have a huge potential to tap the crypto market.
This market does need wealth managers for strengthening the trust of investors in cryptocurrencies considering they are highly sentiment-driven, risker coupled with high cyber threats, and no regulatory backup.
The crypto market is currently untapped by wealth managers.
In the 22nd edition annual report on the global wealth management industry, the Boston Consulting Group (BCG) on Thursday said that "non-traditional wealth managers currently manage up to $1 trillion in crypto-related wealth, and the market capitalization for crypto could increase four- to five-fold by 2030."
There is a huge opportunity in the crypto market for wealth managers.
BCG report said, "the opportunity for wealth managers is clear: nearly 80% of clients surveyed said that they would consider increasing their crypto holdings if wealth managers offered advisory and education services."
Further, as per the BCG report, two-thirds of clients who sourced their crypto investment with third parties said that they did so because they didn’t think their wealth managers offered such services.
"To determine whether crypto is right for their businesses, wealth managers must consider if, when, and how they want to participate," the BCG report said.
Anna Zakrzewski, global leader of BCG’s wealth management segment and a co-author of the report, said, “Although this stability provides tremendous opportunity for wealth managers, they must make strategic choices to remain competitive. Wealth clients are looking for next-generation offers and next-level service—including net zero, crypto, personalization, and digitization. The most important question facing wealth managers today is not which initiatives to prioritize, but how best to implement them."
In general terms, wealth managers are called professionals that offer a host of services including investment advice, helping tax planning services, estate planning, and other financial planning. They often work as brokers or asset managers who offer their advice on stocks or mutual funds and trade in these securities for their clients. Wealth managers are required to be experienced and capable advisors well-versed in everything right from investment, tax, retirement, and financial planning.
The income of wealth managers is through the fees their firm charges for providing various services to clients.
As per CoinMarketCap which tracks real-time performance, the global crypto market cap is around $1.25 trillion rising by 0.20% over the last day. However, in volume terms, the crypto market stood at $63.75 billion currently nosediving by 30.05% over the last 24 hours.
Meanwhile, the total volume in DeFi is currently at $7.36 billion - 11.55% of the total crypto market 24-hour volume. The volume of all stable coins is now $55.84 billion, which is 87.60% of the total crypto market's 24-hour volume.
At present, Bitcoin is below the $30,500-mark. It is trading at $30,376.15 down by 0.28% with a market cap of $579.53 billion. Bitcoin is the leader in the crypto market. However, due to selling pressure, Bitcoin's dominance has slipped by 0.09% to 46.44% over the day.
Counterpart Ethereum inched up and traded around $1,810. Tether was broadly flat but in the red and traded at $0.9994.
Top performers on the crypto market today are - Tezos XTZ up nearly 9%, Chainlink (LINK) surging over 8%, OMG Network climbed over 7.7%, Helium advanced over 6% and Solana jumped above 5%.
Top underperformers on the crypto market today are - Elrond (EGLD) shedding nearly 6%, Gala diving by 3.5%, Klaytn (KALA) dipped over 3%, ApeCoin (APE) dropped 2.85%, and eCash (XEC) plunging 2.8%.
