Displaying items by tag: alternatives

Bitwise CIO Matt Hougan believes the long-observed four-year cryptocurrency cycle may be breaking down, suggesting this cycle could be “bigger and last longer” than expected. Traditionally, crypto markets follow a rhythm of three bullish years followed by a correction, often tied to Bitcoin halving events or macroeconomic shifts. 

Hougan argues that despite recent regulatory headwinds, the foundational infrastructure—like stablecoins, DeFi, and tokenization—has quietly strengthened and is now poised to accelerate. He likens the industry to a “coiled spring,” ready to expand rapidly as regulatory barriers are lifted, especially under more crypto-friendly political leadership. 

While he acknowledges the potential for a correction driven by speculative excess, Hougan believes any downturns will be more muted and short-lived than in past cycles. 

Finsum: With maturing markets and a broader, more value-focused investor base, could 2026 bring another crypto winter—or simply the next phase of a longer growth era.

Despite high interest rates and rising property prices, real estate investors still have several promising opportunities to consider in 2025. 

1. Experts point to both short- and long-term rentals as reliable income sources, with travel demand and declining homeownership supporting steady occupancy and profitability. 
2. Distressed, off-market properties are also gaining traction, offering value to investors who can act quickly and renovate effectively. 
3. Multi-family homes, especially triplexes and fourplexes, are ideal for new investors looking to house hack—living in one unit while renting the others to offset mortgage costs. 

Another savvy strategy is converting basements into rentable units, particularly in high-rent cities, where this can generate solid monthly income. 

Finsum: In short, even in a tricky housing environment, creativity and timing can open doors to strong real estate returns.

Global private credit is staging a recovery from a decade-low slump, driven by stronger-than-expected global GDP growth and a gradual shift toward looser monetary policy. 

Although deal activity remains below historical norms, transaction volumes grew 7% last year, with deal values rising 15% to $3.5 trillion, bringing the market closer to pre-pandemic levels. Despite lingering valuation gaps and geopolitical uncertainty, optimism is building for a stronger M&A rebound in 2025, which could further boost private credit’s rapid ascent as an alternative financing source. 

The asset class has cemented itself as a critical pillar of corporate lending, filling the gap left by traditional banks and offering borrowers more tailored, flexible funding solutions. Investors are increasingly drawn to private credit’s ability to deliver stable returns and diversify portfolios, fueling further expansion in the sector. 

Finsum: As dealmaking momentum builds, firms are poised to capitalize, leveraging their global network and deep industry expertise to connect capital with opportunity.

The neo and challenger bank market is undergoing rapid expansion, driven by advancements in fintech, increased digital adoption, and evolving consumer expectations. These digital-first banks, operating without physical branches, are reshaping financial services by offering personalized, low-cost solutions. 

Market growth is fueled by smartphone penetration, regulatory support, and innovations in AI, blockchain, and open banking. Despite challenges like cybersecurity risks and compliance complexities, investments in security and transparency are building consumer trust. 

Leading players such as Revolut, Monzo, and Chime continue to expand through strategic innovations and global outreach. As digital banking gains traction worldwide, emerging markets in Asia, Latin America, and Africa present significant growth opportunities.

Finsum: This presents an opportunity as an investor as well as consumers, these services can improve client options and opportunities. 

BlackRock’s acquisition of HPS Investment Partners highlights a strategic push into private credit, a rapidly growing sector where traditional banking once reigned. Unlike BlackRock’s broad focus on public markets, HPS has excelled in targeted private lending, taking calculated risks for higher returns. 

The deal underscores BlackRock’s ambition to rival established players like Blackstone and Apollo in private markets, particularly by expanding its direct lending and junior capital businesses. HPS has historically specialized in funding private equity deals with higher-risk debt, a strategy that has delivered strong returns but also exposed it to occasional losses. 

The acquisition aligns with BlackRock’s vision to integrate public and private fixed-income offerings, particularly for institutional investors like insurers. 

With a solid track record and plans to venture further into investment-grade private credit, HPS is poised to play a pivotal role in BlackRock’s private markets expansion.