Key Takeaways
- Despite global political uncertainty, many financial markets are thriving.
- The FCA is lifting its ban on crypto Exchange Trade Notes (ETNs) on Oct. 8th.
- However, many investors feel locked out of affordable wealth management tools.
The main indexes across the U.S., the U.K. and Europe have all seen their value reach unprecedented heights. Despite this strong growth, investors are looking to diversify their portfolios by embracing alternative assets that provide new and uncorrelated opportunities.
This is exemplified by the huge growth in gold – and by the time you’ve read this, this asset’s price per ounce may have broken the $4,000 barrier for the first time as it continues its meteoric rise, amounting to 30% over the last six months alone.
Huge Demand for Alternative Assets in a Turbulent World
Our research shows that nearly eight in ten (77%) U.K. investors want more control over their investments amidst volatile global markets with the same proportion wanting to be able to personalise their strategies.
Alternative assets go hand-in-hand with increased choice, and this is driving investor appetite for other a broad range of alternatives including cryptocurrencies. The value of Bitcoin, for example, has increased by a staggering 96% over the last 12 months and Ethereum has risen 85% over the same period.
In total, €26 billion in crypto Exchange Traded Notes (ETNs) were traded on European exchanges in 2024, up more than 300% from the previous year.
Investing from an early age can be one of the most effective approaches to building wealth to meet financial goals. It is vital that investors have access to the widest range of high-performing assets available, whether that is through traditional markets, commodities, crypto, or other alternatives.
It is, therefore, welcome news that the FCA is lifting its ban on crypto Exchange Trade Notes (ETNs) on Oct. 8th. This move will unlock access for U.K. retail investors to crypto exposures and empower them to embrace this asset class to both diversify portfolios and seek out new opportunities.
Once the FCA ban lifts, regulated access to these assets will be available to U.K. investors. This will allow investors to invest directly in crypto products within their current investment strategies.
The FCA’s changes are an important step towards providing investors with greater control over how their portfolios are built as it enables them to personalise their investment strategies to better suit their goals. But there is more work to be done.
Removing Barriers to Wealth Management Tools
Increased access to crypto assets will likely drive demand but this is not the only barrier investors are facing – many of them feel locked out of affordable wealth management tools.
Stratiphy’s research found that two-thirds (67%) of people in the U.K. feel that everyone should be able to access investing tools, but too few people invest because it is seen as too complicated.
Nearly half (48%) want help with saving and investing, but feel traditional wealth management tools are too expensive. This rises to seven in ten (69%) among those actively considering investing in the future.
Clearly, a wider industry issue needs to be addressed to enable investors to fully embrace high-performing assets such as crypto. Existing barriers to entry need to be removed if we are going to offer investors a level playing field.
This means simple solutions are needed that unlock everyday investor access to wealth management capabilities that have previously only been available to high-net-worth investors or institutional investors.
For example, AI and historical simulation can provide granular insights into changing market conditions, and help to build confidence in the resilience of a strategy’s performance over a broad range of past market conditions.
Yet, too few investors are currently able to access these tools.
Everyone should have access to the best quality tools out there as the industry strives to level the playing field with professional wealth managers – this starts with lowering costs and unlocking access to investment tools that provide personal insights and autonomy to empower investor decision-making.
U.K. Catching up to the EU
Investors across Europe have been enjoying access to crypto within a regulated framework, and the U.K. is finally catching up.
As investor demand grows and more people look to join this market, it is important that the investment industry provides a range of solutions that meet the varying capabilities and skillsets of those represented.
The industry needs to do more to open up access to high-quality and personalised investment tools if we are to truly democratize crypto markets for everyone.
The views, thoughts, and opinions expressed in the article belong solely to the author, and not necessarily to CCN, its management, employees, or affiliates. This content is for informational purposes only and should not be considered professional advice.
About the Author
Daniel is the CEO and Founder of Stratiphy, a recently launched wealth management platform that empowers investors to personalise and automate their investment portfolio. Daniel has extensive experience in investment banking which inspired him to take the investing tools used by banks and professionals and make them accessible to everyday investors.
