Max Freccia from Truvius discusses Active and Passive Investment Models for Cryptocurrency Investing
07/13 18:15
Truvius' Max Freccia discusses the use of active and passive management in cryptocurrency investing, covering various strategies and their pros and cons. As the cryptocurrency asset class matures, different investment models are emerging to support client interest and help advisors navigate digital asset investing. Advisors should consider the risk characteristics of crypto as an alternative asset and determine whether to hold actual crypto or invest in funds based on their investment thesis and risk profile. The use of SMAs for cryptocurrency investment offers improved diversification and potential for outperformance, but may require a higher-touch onboarding process. As adoption of crypto grows, the challenges of self-custody and inflexibility may impact advisors managing clients' investments.
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