Experts from one of the largest banks in Switzerland, UBS, have presented an investment strategy through which investors can avoid the risks associated with the high volatility of digital currencies.
Last week, analysts at UBS, one of the largest banks in Switzerland, published a research note explaining how to invest in cryptocurrencies without owning them directly. According to the bank’s experts, this can protect investors from some of the risks associated with investing in digital assets.
UBS analysts noted that direct ownership of cryptocurrencies is very dangerous due to their high volatility. As an example, they cited the recent fall of bitcoin from an all-time high in November. However, this does not mean that crypto-related technologies cannot benefit investors.
The strategy proposed by the bank’s analysts is to invest in companies that create the necessary infrastructure for cryptocurrency ecosystems. Experts explain that such companies are likely to benefit from the increased use of tools based on distributed ledger technology (DLT).
“More and more fintech companies are implementing DLT into their infrastructures. This requires a lot of computing power. Therefore, firms involved in the development of integrated circuits (ASIC) or GPU, as well as software and data center creation, may be of much greater interest to investors, ”the note says.
Recall that in July last year, UBS CEO Ralph Hamers, in an interview for Bloomberg TV, called cryptocurrencies “an untested category of assets.”
Source: Bits
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