Displaying items by tag: crypto

White-label exchange-traded fund provider HANetf recently launched a range of model portfolios allocating to both in-house and third-party products. The portfolios were launched in collaboration with London-based financial technology firm Algo-Chain. The six portfolios are targeted at financial advisors, wealth managers, private banks, execution-only brokers, robo-advisors, and other money managers who offer ETF portfolios to their clients. HANetf’s balanced, growth, and adventurous model portfolios use ETFs to provide exposure to equities, fixed income, commodities, and alternative assets. Each portfolio provides a different asset allocation, different risk levels, target volatility, and target maximum drawdown. The firm’s ESG growth portfolio is a multi-asset portfolio that invests in impact investing and ESG-themed ETFs. According to HANetf, third-party ETFs are used where appropriate for the first four portfolios. The Future Trends Themed Equity and Digital Assets and Crypto ETP portfolios, on the other hand, allocate exclusively to HANetf funds. The Future Trends Themed Equity portfolio seeks to invest in ETFs that have exposure to the latest megatrends and themes, while the Digital Assets and Crypto model invests in exchange-traded products that give exposure to some of the largest cryptocurrencies, and an ETF with exposure to the blockchain and digital assets sector.

Finsum:White-label ETF provider HANetf launched six model portfolios, including balanced, growth, adventurous, ESG, future trends, and crypto portfolios.

Cryptocurrencies are no stranger to volatility but the latest fluctuations could prove terminal at least for the companies. Goldman Sachs downgraded Coinbase Global to a sell this weak as the stock tumbled by almost 10%. The new price target according to GS is $45 which is a far cry from the +$300 it traded at after it IPO’d. While bitcoin, Ethereum, and the rest of the asset class may survive the slowdown companies supported, or rather supported by, crypto might not make it. Bitcoin has lost 55% of its value which is putting lots of pressure on the revenue streams of the company forcing layoffs and other drastic measures. Just recently Coinbase cut nearly a fifth of its workforce in order to weather the brunt of the storm.

Finsum: This might not prove fatal for bitcoin but could for the companies relying on the asset, even international troubles and inflation aren’t lifting up the asset class yet.

The SEC has splashed headlines recently with crypto and ESG rule changes, and they are once again widening their scope. They have proposed a new rule which would force trading firms to register as dealers and fall under oversight. Algorithm and high frequency traders woud now fall under SEC guidelines and scrutiny. Gensler believes these traders provide an important liquidity function for the US financial system and should be overseen by the SEC. The rules would not apply to those that manage less than $50 million. These requirements would put high costs on many financial market participants and might not be justified according to experts.

Finsum: These measures are to prevent a 2020 Fed step in again, but it's difficult to see if this much oversight is warranted given how much it will cost.

Crypto could be a stress inducer when it comes to managing their tax solutions. However, a variety of portfolio products help investors navigate their digital wallets, track crypto investments, and manage their tax solutions. These portfolio trackers can help investors navigate the nuanced complexities in capital gains taxes that are constantly evolving. CoinTracker, TokenTax, and CoinLedger are all great crypto portfolio managers. TakenTax really lets investors take advantage of tax loss harvesting to optimize their crypto portfolio.

Finsum: Cryptos wash rule differences should incentivize investors to take advantage of tax loss harvesting.

The mainstream financial world is all over the place when it comes to crypto however, Bridgewater Associates is planning on increasing their exposure to digital assets. The firm has made it clear they have some small investments in crypto, Dalio himself advises investors to allocate a small portion of their portfolios into crypto. It will most likely only be a small portion of their $150 billion portfolio but it is in phase 1 of 2. Marshall Wace, Point72 and Brevan Howard have all made crypto investments in the last year.

Finsum: Biden’s most recent crypto executive order legitimizes crypto in many investors eyes because it brings it into the traditional realm.