The following is a guest post by Peter Curk, CEO at ICONOMI.
The year 2024 has been a pivotal one for digital assets, with Ethereum’s Dencun upgrade, the approval of Bitcoin exchange-traded funds (ETFs), and the implementation of the Markets for Crypto Assets (MiCA) regulation.
Bitcoin’s record high post the U.S. presidential election has spurred major asset management firms into action, with Bitcoin ETFs alone attracting over $621 million in new investments.
With Bitcoin’s market cap expected to reach nearly $1.5 trillion by the end of 2024 and the total crypto market cap nearing $2.5 trillion, interest in digital assets remains strong.
Surveys indicate that more than half of institutional investors are now involved with digital assets, and companies across various industries are eager to enter this dynamic sector.
The decentralized and highly volatile nature of crypto markets necessitates specialized tools for efficient portfolio management. Many investors still rely on outdated models for crypto management, leading to increased risks, fragmented data, and inconsistent reporting.
As a result, the demand for robust crypto asset management systems that offer investors and institutions the security, scalability, and efficiency required to manage digital assets has never been higher.
Handling Crypto Across Blockchains and Exchanges
Managing crypto assets across different blockchains and exchanges is intricate and requires constant monitoring due to the 24/7 price fluctuations, liquidity, and market sentiment. Unlike traditional asset management, the unique demands of crypto can overwhelm investors and fund managers, especially those dealing with multiple tokens across various networks and exchanges.
Specialized asset management software simplifies liquidity management and streamlines diversification across assets by connecting investors to multiple exchanges through a single interface. These all-in-one platforms handle tasks like buying, selling, and portfolio management seamlessly.
For instance, some platforms provide licensed asset managers, wealth managers, and financial advisors with a unified solution for managing multiple portfolios. These platforms support effective asset management by enabling investors to track, secure, and manage digital assets across exchanges. Advanced features like automatic portfolio rebalancing ensure assets remain aligned with investment objectives, while real-time data tracking facilitates informed decision-making.
Digital asset management platforms are particularly valuable for asset managers, institutional investors, and family offices. With a centralized dashboard, users can manage multiple portfolios and easily distribute them to clients, improving oversight and organization.
Additionally, digital asset management tools offer multiple trading algorithms that optimize efficiency. Licensed asset managers and financial advisors can trade at optimal prices on major exchanges. Users gain the flexibility to effectively and securely manage diverse portfolios with integrated portfolio tools, automated trading, and secure storage.
Streamlining Crypto Management
While there is no one-size-fits-all approach to asset management, following expert-created strategies is more likely to yield positive results than relying on guesswork. Platforms that enable the creation of multiple investment portfolios help investors navigate complex holdings with ease. Asset management tools designed for professionals allow licensed managers to create, manage, and track expertly developed portfolios efficiently. Instead of individually analyzing different portfolio models, diversifying with a single click simplifies the process for asset managers and financial advisors.
Crypto management platforms utilize a smart trading engine that ensures optimal trade execution across markets. By finding the best prices, this feature reduces friction and enhances transaction efficiency, making it easier for traditional asset managers to enter the crypto space. It is an invaluable tool for those seeking high-quality trades across a vast network of options.
Another significant feature of digital asset management platforms is their use of smart trading engines that ensure optimal trade execution. By finding the best prices across markets, these features lower barriers for traditional asset managers entering crypto, boosting trading efficiency and reducing friction.
Security and Compliance for Professional Trust
Security has always been a major concern for professional investors. Crypto asset platforms offer multi-layered wallet protection, including cold storage options that safeguard digital assets. Users benefit from simplified administrative tools such as invoicing, transaction reporting, and tax management.
Platforms that comply with regulations from institutions like the Financial Conduct Authority (FCA) not only provide a personalized experience for asset managers but also build trust and enhance professional appeal.
