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At Fidelity, we believe that the opportunities that digital assets offer, underpinned by the capabilities of its underlying Distributed Ledger Technology (DLT), present a new frontier in the way we invest.
This is why we are convinced that the industry – and ultimately our clients – could benefit from adopting this new technology and asset class, in particular as they become more widely adopted and regulated, which in turn expands perspectives on the future of investments.
Benefit from our latest insight
A research-driven framework that helps investors understand Bitcoin's unique characteristics and its risk/return profile as an alternative asset class. This paper highlights the potential role of a small allocation within a multi-asset portfolio.
Digital Assets – a new frontier
Our research suggests that DLT has the potential to revolutionise parts of the financial system, with profound implications – and opportunities – for investors. Those opportunities may be directly related to growth, but they may also be drivers of industry simplification, transparency, cost savings and product innovations.
We believe the future of asset management will increasingly involve digital assets – and understanding them today will be key to unlocking the potential, or avoiding the risks, that they present to you or your client's portfolio in the future.
We believe the future of asset management will increasingly involve digital assets – and understanding them today will be key to unlocking the potential (or avoiding the risks) that they present to you or your client's portfolio in the future.
Cryptocurrency, as a digital alternative to government-issued fiat currency, is one of the most talked-about forms of digital asset. But, just as there are different asset classes in the traditional financial system, digital assets could be best understood by categorising them.
Each category represents a different set of risks and will likely attract different regulation, both of which are critical in the context of investment decisions. However, because digital assets can be programmed and combined, the boundaries between categories can become fluid and overlaps are unavoidable.
This is the reason why investors should have a basic knowledge, at least, of the main features of the different categories.
The tremendous acceleration digital assets have had in the last decade has not solved all problems yet. A fragmented market, increasingly complex technological requirements, lack of clear regulatory frameworks make the institutional investors' journey into digital assets more complex than traditional asset classes with familiar and established landscapes.
Challenges for investors include those associated with custody, trading complexities and portfolio integration summarised below.
Important information
This document is being distributed in Taiwan only to Financial Institution Clients which fall under the definition of "Financial Institution Clients" as referred to the provisions of Article 3, Paragraphs 3 and 4 of the Regulation Governing Offshore Structured Products.
Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with high-risk tolerance. Investors in digital assets could lose the entire value of their investment.
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