The management of the investment company Wisdomtree believes that cryptocurrencies will become an integral part of the portfolio of any investor in the next few years.
Jason Guthrie, head of digital asset management at Wisdomtree, said in an interview with Ftadviser that the time when people could doubt whether cryptocurrencies would linger in the financial system is long gone. According to Guthrie, digital currencies have firmly established themselves as a new asset class and this cannot be ignored by either professional investors or amateurs.
Wisdomtree is a New York-based investment fund that is considered one of the leading managers of exchange-traded funds (ETFs) and exchange-traded products (ETPs). The company has been working with digital assets for the past few years. At the end of March, the company launched three new ETPs on Polkadot, Solana, and Cardano.
Guthrie is convinced that digital currencies will soon become so firmly rooted in the financial system that many investors will choose investment companies based on the ability to bring clients to digital asset markets. However, a Wisdomtree management representative acknowledges that the market is still speculative, which means that you should be careful not to invest too much of your capital in cryptocurrencies.
Guthrie says his company adheres to the principle that investments in digital currencies should not cover the percentage of invested assets in the range from 5% to 11%, where 11% is the threshold, and where reaching it can be considered an aggressive strategy. In the coming years, Guthrie argues, the number of crypto investors will grow exponentially.
Late last year, the US Securities and Exchange Commission (SEC) rejected Wisdometree’s application to launch a Bitcoin ETF. According to the SEC, the company did not meet the requirements for listing a financial product.
