The next generation of digital asset investors
Investing in risky assets – asymmetric information
When new types of assets or assets in new geographic areas first become investable, it is usually highly sophisticated expert investors who are able and willing to take the exceptional risks and invest the time and effort to gain expertise.
There are several examples of this from the 1980s/1990s, as the first hedge funds emerged and major investment companies first started investing in emerging markets (Mark Mobius), adopting new ways of investing such as global macro/currencies (Tudor, Soros), or exploiting trading inefficiencies through quantitative methods (Jim Simmons).
The information inefficiencies that these investors leveraged through the expertise they developed afforded them extraordinary returns and allowed them to amass great fortunes. Meanwhile the average investor had little knowledge of, and little or no exposure to these markets and asset classes which they typically perceived as overly risky.
After the success of the pioneering investors, large amounts of capital were allocated to these strategies and asset classes, which eventually eroded the information asymmetry, and with that the exceptional returns.
The parallel in protocol tokens
Fast forward to today – the newly developing asset class of protocol tokens represents a similar opportunity of asymmetric information, available to those who have developed the exceptional expertise required and offering the potential for significant returns. As protocol tokens are investments in the development and future adoption of blockchain protocols, they are akin to investing in the internet at the early stages and to benefit from what has become the foundation of the sharing economy, e-commerce and all kinds of other business models.
Although this emerging asset class has thus far demonstrated a low correlation to traditional asset classes, the risks are also greater than most investors have appetite for. There are new types of risks such as storage of private keys, counterparty risk on new types of intermediaries, and regulatory risks, to name but a few.
The next generation of investors
At Sygnum Asset Management, we see this as a great opportunity. To take advantage of it, we seek out the best-in-class digital asset investment managers who understand the risks involved in this new asset class, and have developed the expertise to extract value from the information asymmetries and market inefficiencies.
We combine these managers in a diversified portfolio which we offer to our clients.
“We look at this new generation of investors, bright minds that understand this new world of investing, and we bring a high conviction portfolio to our investors, aiming to capture extraordinary opportunities similar to what we have seen the trailblazing managers of the early nineties capture through exploiting the asymmetries and inefficiencies available at that time.”
Stefan Mueller, Sygnum Head of Asset Management
Onboard digitally with Sygnum
100% digital onboarding is the fastest and most convenient way to join Sygnum Bank. With a few clicks, you can verify your identity via video*, submit information, and sign contracts, all online. Once onboard, put your deposited CHF, EUR, SGD and USD to work to securely buy, trade and hold Bitcoin, Ethereum and XRP 24/7. You can also access a Digital CHF token for instant settlements, and soon a diverse range of asset tokens – all seamlessly integrated in one account, accessible from anywhere in the world.
As part of our portfolio of regulated digital asset banking services, you can also increase fiat liquidity with a lombard loan against your digital assets, invest in our digital asset MultiManager fund, and add regulated digital assets services to your business with our B2B banking services.
*Available Monday to Saturday, 7am – 10pm CET