Crypto Unlocked: In the bleak midwinter - Page 29

either holding direct cryptocurrency ( mostly bitcoin ) or trading cryptocurrency futures , according to Morgan Stanley data .
Chapter 4 : ETP structure

$ 70bn

either holding direct cryptocurrency ( mostly bitcoin ) or trading cryptocurrency futures , according to Morgan Stanley data .
tokenised assets with traditional financial market infrastructure and the effect it will have on regulatory obligations of intermediaries such as transfer agents and distributors is a critical aspect in the development of a tokenised ETF marketplace .
Fund management will still play a role in this ecosystem . As with music and beaches , retail investors will continue to want bundles of assets representing the best companies , sectors and geographic regions for returns , whether that representation is via blockchain-based tokens or traditional stocks and bonds .
Like today , some investors will want active managers to curate funds of the best opportunities , based on their detailed analysis of individual investments . But many will want the lower costs and widespread diversification that comes through investing in indices and other large buckets of passively selected assets .
And , in this sphere , the ETF is in poll position to become a preferred fund-based wrapper for retail investors looking for access to private markets and other illiquid alternatives .
Firstly , it is the fastest-growing fund type of the past decade and its existing advantages in terms of liquidity and low fees will remain in a digital asset fund environment . Also , ETFs are at the forefront of existing use cases for blockchain in fund management .
Along with other exchange traded vehicles , such as ETPs and ETNs , they make up 46 of the 73 funds globally , with an AUM of approximately $ 70bn , either holding direct crypto currency ( mostly bitcoin ) or trading cryptocurrency futures , according to Morgan Stanley data .
And this early mover status in the crypto space is typical of the spirit of innovation which gave birth to ETFs and has been a feature of the market ever since .
They continue to be more cost effective and to outgrow mutual funds and the digital ETF market is expected to continue to grow as the ETF structure provides a low fee , transparent , regulated and listed vehicle by which institutions and other investors can add cryptocurrency and , in the future , digital asset exposure to their portfolios .
The future is coming but and , as with previous technological disruptions in legacy industries , the changes will be major . But for those who adapt , it will mean the ability to offer improvements that customers will see and feel as they interact with their savings and investments .
Marcus Grubb is global head of product and Nitin Gaur Global is head of digital asset and technology design at State Street Digital
State Street DigitalSM Disclaimer Information This communication is provided by State Street Bank and Trust Company , regulated by the Federal Reserve Board , and / or State Street Bank International GmbH , authorized by Deutsche Bundesbank and supervised by the German Federal Financial Supervisory Authority , or their bank and non-bank affiliates (“ State Street ”). Products and services are offered by State Street to professional clients or eligible counterparties or their equivalent and may not be available in all jurisdictions . Activities described herein may be conducted from offshore . The information provided is only general and has not been reviewed by any regulatory authority . This communication is intended for general marketing purposes , and the information contained herein has not been prepared in accordance with legal requirements designed to promote the independence of investment research . It is for clients to determine whether they are permitted to receive research of any nature . It is not intended to suggest or recommend any transaction , investment , or investment strategy , does not constitute investment research , nor does it purport to be comprehensive or intended to replace the exercise of an investor ’ s own careful independent review and judgment regarding any investment decision . This communication is not intended for retail clients , nor for distribution to , and may not be relied upon by , any person or entity in any jurisdiction or country where such distribution or use would be contrary to applicable law or regulation . This communication or any portion hereof may not be reprinted , sold or redistributed without the prior written consent of State Street . This communication and the information herein does not constitute investment , legal , or tax advice and is not a solicitation to buy or sell securities or any financial instrument nor is it intended to constitute a binding contractual arrangement or commitment by State Street of any kind . The information provided does not take into account any particular investment objectives , strategies , investment horizon or tax status . The views expressed herein are the views of State Street as of the date specified and are subject to change , without notice , based on market and other conditions . The information provided herein has been obtained from sources believed to be reliable at the time of publication , nonetheless , we make no representations or assurances that the information is complete or accurate , and you should not place any reliance on said information . State Street hereby disclaims any warranty and all liability , whether arising in contract , tort or otherwise , for any losses , liabilities , damages , expenses or costs , either direct , indirect , consequential , special , or punitive , arising from or in connection with any use of this document and / or the information herein . This communication may contain information deemed to be forward-looking statements . These statements are based on assumptions , analyses and expectations of State Street in light of its experience and perception of historical trends , current conditions , expected future developments and other factors it believes appropriate under the circumstances . Digital assets are subject to risk including , but not limited to , market risk , counterparty risk , legal , tax , and regulatory risk . All information is subject to change without notice . Past performance is no guarantee of future results . Please contact your State Street representative for further information . To learn how State Street looks after your personal data , visit : https :// www . statestreet . com / utility / privacy-notice . html . © 2022 State Street Corporation – All Rights Reserved 4883793.1.1 . GBL . Exp 8 / 2 / 2023