Digital assets are becoming more and more of a mainstream asset class, with a plethora of investors including big investors such as Microsoft, Apple, Amazon and Netflix investing billions in them.
In the United States, more than $1.7 trillion is invested in digital assets each year.
The amount of digital assets sold each year is expected to rise to $1 trillion by 2022, according to the latest data from UBS Group AG.
The global market is expected by UBS to reach $1,200 trillion by 2021, while the market cap is expected at $1tn by 2025, according the data.
The digital asset investing landscape is changing fast, as many digital assets such as digital currency, bitcoin and ether are being traded at a premium and are being offered at a higher price point, especially with a variety of asset classes.
According to UBS, digital assets are expected to account for about 6% of total equity capital in the United Kingdom by 2021.
In China, digital asset investments are expected by the country’s financial services industry to reach about 40% of all equity capital by 2021 and by 2020 to reach 70% of the overall equity capital.
The number of digital asset transactions are expected grow at an average of 20% a year, according UBS.
With more and better-known companies such as Apple, Netflix, Amazon, Microsoft and others investing heavily in digital currencies, investors are turning their attention to digital assets.
Many digital assets companies are targeting the new digital asset space to create more value, with many offering their customers a diversified and attractive portfolio of digital currencies such as bitcoin, ether and litecoin.
Digital assets have become a lucrative asset class for many investors as the demand for digital assets continues to grow.
Investors are increasingly attracted to digital asset classes due to their diversification and high-grade security and liquidity, according Toi Moogler, chief digital strategist at BNP Paribas in Amsterdam.
In 2018, BNP and other leading digital asset investors are expected buy a total of $1bn worth of digital and blockchain assets.
The value of the digital assets that they invest will be based on the price volatility of digital currency (USD) and other digital assets (JPY).
By 2022, the value of digital tokens that they hold will be $6.2 trillion.
However, it’s not just digital assets where the number of investors are growing.
Investors from Japan, South Korea, India and other emerging economies are also investing heavily.
According the data from Korda Capital Advisors, a New York-based investment bank, the number and size of institutional investors has increased significantly in the last two years.
According Kordas, the total number of institutional investor has grown to 3.5 million, with nearly $2.4 trillion invested globally in the space in 2018.
The average amount of capital that institutional investors have invested is $100,000 a year.
With institutional investors buying in more of digital equity in the past two years, they are now making up a bigger portion of the total market, which could increase the value for their investors.
As a result, digital equity has become more attractive to institutional investors, and now there are also many new investors coming into the space.
For digital assets, there are more and higher liquidity, higher security and higher value that come with it.
The market cap of the global digital asset market has increased by around 10% a decade in the beginning of the 20th century, according Kordi.
This is because the demand is higher and the liquidity is greater.
“Investors are now becoming more active in digital asset markets and the demand has risen substantially in the first three years after the first wave of crypto-focused companies emerged,” said John Hildebrand, chief investment officer at Kordia.
“As the demand grows, investors will have to pay more attention to the security and quality of digital collateral they receive, especially as it increases in value,” he added.
The price of digital token (digital currency) has risen by around 50% since January 2018.
According Toi Moll, chief economist at Korsgaard Capital Advisers in Stockholm, digital tokens are becoming the preferred investment medium for many people, especially in emerging markets.
The reason behind this is because they are safer than traditional assets and are more liquid, as well as the more attractive price.
“Digital assets have the highest liquidity of any asset class and the highest return potential,” said Moll.
“The main reason for the rising value is because of the high quality of the security, and because the token itself is highly liquid.
As for the security itself, this is a good thing as the value can be expected to increase over time.”
Digital asset investor will make more than money digital token, says Toi.
It’s a good investment for the investor, because it has a high return potential, added Toi, who is a member of the advisory board of Korsdag Capital Advisurs