3 - 4 minute read
Hashkey Group, a digital asset financial services firm, has launched Hashkey Wealth, a wealth management service aimed at professional and accredited investors, family offices, and institutions. There is significant demand for digital assets among such investors, with less than 1% of individual wealth invested in cryptocurrency, according to Boston Consulting Group. This creates a substantial opportunity for growth in crypto exposure. To cater to professional investors, Hashkey has extended its over-the-counter (OTC) service, broadening its liquidity coverage and range of tokens in the spot market.
Hashkey recently obtained approval from Hong Kong’s Securities and Futures Commission (SFC) to manage portfolios that are 100% invested in crypto, following its acquisition of a Type 9 asset management license.
Hashkey Group was launched in 2018 and has since established a strong reputation in the crypto world. Its trading platform boasts one of the world’s most comprehensive offerings of digital assets. Its clients include corporations, small and medium-sized enterprises, and individual investors.
According to Dave Hodgson, CIO of NEM Group, “We are seeing a big trend here as digital asset firms target the wealth management market. It’s evident that the digital asset revolution is attracting interest from classical finance as it matures, especially with limited supply and strong demand for scarce digital assets.”
In an interview with CoinDesk last February, financial advisor Andy Kwon said that his clients have been very interested in the returns of cryptocurrencies, and that an allocation in digital assets can help reduce a portfolio’s volatility. However, he also noted that investing in digital assets is not for everyone, and investors need to be educated about the risks and benefits of cryptocurrency investments.
Hashkey Group’s foray into wealth management services indicates the increasing mainstream acceptance of digital assets as a legitimate asset class. Professional investors and institutional investors continue to show interest in investing in cryptocurrency. Family offices, which manage the wealth of ultra-high-net-worth individuals, have also dabbled in digital assets, with notable examples such as billionaire Mike Novogratz’s Galaxy Digital and the Rothschild Investment Corporation.
The Bottom Line
As digital asset firms expand their product offerings to cater to professional and institutional investors, there is a growing need for education and awareness about the opportunities and risks of investing in cryptocurrency. Hashkey’s wealth management service aims to tap into significant investor demand for digital assets among family offices and institutions. The recent approval from Hong Kong’s Securities and Futures Commission to manage portfolios entirely invested in crypto is a clear indication of the increasing legitimacy and mainstream acceptance of digital assets as an asset class.