Digital Assets
A new and maturing asset class
Cryptocurrencies and tokens have given the market a new investment category in the form of Digital Assets. This presents a hedging opportunity against more traditional financial instruments.
Fund managers who give an investment portfolio exposure outside of the traditional financial system can bring about a level of diversification never seen before.
We’re now entering into a unique situation where first movers and early adopters can take advantage. Global data is pointing towards increasing and unsustainable debt levels, caused by the failing financial system. The next recession will be the first where Digital Assets are available as a hedge.
Traditional Assets
Centralized Diversification
Digital Assets
Decentralized Diversification
Hedge against the system
Get exposure outside of the traditional financial system through investment in Digital Assets. With 80% of all of Kintaro Capital’s portfolio being invested in cryptocurrencies, it removes much of the risk associated with a more traditional investment fund.
Increased acceptance
Benefit from a level of diversification that has never been seen before, with crypto entering a more mature and developed stage. Increasing trust and institutional adoption have created acceptance with investors who are realising the full potential of crypto.
Be smart
Take this opportunity while it’s in the discovery & early investor stage. There are benefits for those who move early during the longest bear market in the history of cryptocurrencies. Smart money is buying now, indicating confidence in the future of the crypto market.
The next recession we have will be the first where Digital Assets are available as a hedge
Low correlation between Digital and Traditional Assets proves the diversification benefit of this new class
Cryptocurrency Correlation Matrix, 90-Days
Low correlation with traditional assets
The low correlations are attributable to the different value drivers. Cryptocurrency is shown to have a low correlation with traditional bond markets and stock indexes, making it a sound investment choice when looking to avoid negative portfolio returns during the next recession period.
Crypto value set to rise
Traditional asset returns follow economic growth, interest rates and corporate profits. Crypto is tied to the success & adoption of underlying technological factors such as blockchain and cryptocurrency implementation. With both of these areas continuously growing, crypto value is set to rise.
Regulation and adoption underway
Investor adoption and regulatory developments are also underway in a number of different jurisdictions. Where there was once mistrust we now have regulation, maturity and widespread interest from institutional investors. The days of exchange hacks and fraudulent activity are being swept aside.