Crypto mcap potential to grow 5x by 2030, Wealth Managers will play vital role

Despite having a market capitalization of over $1 trillion and still making headlines, it’s safe to say that crypto markets still have a long way to go to become a mainstream option. significant investment. There is a lack of knowledge about the crypto market and widely investors are hesitant to accept these virtual assets as a means of investment. Investors need proper cryptocurrency advice and education. Thus, wealth managers have enormous potential to tap into the crypto market.

This market needs wealth managers to build investor confidence in cryptocurrencies given that they are highly sentiment-driven, riskier, associated with high cyber threats, and do not benefit of no regulatory safeguard.

The crypto market is currently untapped by wealth managers.

In the 22nd edition of the annual report on the global wealth management industry, the Boston Consulting Group (BCG) said on Thursday that “non-traditional wealth managers currently manage up to $1 trillion in crypto, and the crypto market capitalization could increase fourfold to fivefold by 2030.”

There is a huge opportunity in the crypto market for wealth managers.

According to the BCG report, “The opportunity for wealth managers is clear: nearly 80% of clients surveyed said they would consider increasing their crypto holdings if wealth managers offered advisory and ‘education”.

Additionally, according to the BCG report, two-thirds of clients who purchased their crypto investment from third parties said they did so because they did not believe their wealth managers offered such services.

“To determine if crypto is right for their businesses, wealth managers need to consider if, when, and how they want to participate,” the BCG report says.

Anna Zakrzewski, Global Leader of BCG’s Wealth Management Segment and co-author of the report, said: “While this stability provides a tremendous opportunity for wealth managers, they need to make strategic choices to stay competitive. High net worth customers are looking for next-gen offerings and next-level service, including net zero, crypto, personalization, and digitization. The most important question facing wealth managers today is not which initiatives to prioritize, but how best to implement them.”

In general terms, wealth managers are referred to as professionals who provide a host of services including investment advice, tax planning assistance, estate planning, and other financial planning services. They often work as brokers or asset managers who advise on stocks or mutual funds and trade these securities for their clients. Wealth managers should be experienced and knowledgeable advisers who are knowledgeable about everything from investments, tax, retirement and financial planning.

Wealth managers’ income comes from the commissions that their company charges for providing various services to clients.

According to CoinMarketCap, which tracks real-time performance, the global crypto market capitalization is around $1.25 trillion, up 0.20% over the past day. However, in terms of volume, the crypto market stood at $63.75 billion, plummeting 30.05% in the last 24 hours.

Meanwhile, total DeFi volume is currently $7.36 billion, or 11.55% of the total 24-hour crypto market volume. The volume of all stablecoins is now $55.84 billion, or 87.60% of the total 24-hour volume of the crypto market.

Currently, Bitcoin is below the $30,500 mark. It trades at $30,376.15 down 0.28% with a market capitalization of $579.53 billion. Bitcoin is the crypto market leader. However, due to selling pressure, Bitcoin’s dominance slipped 0.09% to 46.44% during the day.

The Ethereum counterpart moved higher and traded around $1,810. Tether was broadly stable but in the red and trading at $0.9994.

Top performers in the crypto market today are – Tezos XTZ up almost 9%, Chainlink (LINK) up over 8%, OMG Network up over 7.7%, Helium in up more than 6% and Solana up more than 5%.

The major underperformers in the crypto market today are – Elrond (EGLD) losing nearly 6%, Gala plunging 3.5%, Klaytn (KALA) falling over 3%, ApeCoin (APE) fell 2.85% and eCash (XEC) plunging 2.8%.

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Dolores W. Simon