Crypto Becomes Emerging Asset Class for Institutional Investors
Cryptocurrencies have evolved from a marginal experiment into an increasingly recognized financial asset. Initially regarded as a speculative tool for niche communities, crypto assets are attracting attention from institutional investors, private banks, and even pension funds.
This gradual shift reflects a broader recognition of crypto as a distinct asset class rather than a transient trend.
Several factors contributed to this reclassification. Investors are seeking new sources of diversification as correlations between equities and fixed income assets have increased in the low interest rate environment of recent years. An increase of correlation of assets within a portfolio contributes to lower diversification.
To maintain…
