Financial planning involves the effective management of investment resources in the form of advice, products, and services to help affluent clients and investors manage, build, and protect their wealth. Wealth managers study high net worth and affluent investors and their goals, after which informed plans and recommendations will be made.
Wealth management in cryptocurrency is currently the “next big thing.” Alon Muroch, CEO of crypto accounting and management firm Blox, notes that “keeping track and managing your crypto assets is no walk in the park, even, or especially for the more experienced traders. Knowing where your digital assets are kept, how they performed, and their real-time status can be a challenge.”
As a result, many companies and organisations have introduced a tool or concept that is now common in traditional financial markets. This tool is known as asset management. Instead of having to manage many crypto wallets and multiple accounts, the asset management platforms are simplifying the task by helping affluent investors consolidate their diverse holdings and investments while simultaneously providing improved portfolio management tools.
Crypto-asset management services
Currently, several Funds offer crypto-asset management services and thus invest on behalf of clients. So far, this tool has shown promising results, with one organisation Bitwise Asset management reporting about 51% return in less than four months after launching its Bitcoin Fund.
With the increasing popularity of asset management, investors from all walks of life are making a research-based suggestion that the number of crypto investment funds will double.
However, despite this development, some investors still manage their own portfolios. But it should be noted that currently, many asset management platforms have established themselves as go-to-solutions for wealth management, with new ones entering the market almost every day.