Cryptocurrencies are a complete no-go in traditional wealth management. But a simple refusal won’t do and private bankers need to be ready to answer clients’ questions.
An experienced private banker knows almost anything about equities, funds, portfolio management, ETFs, and inheritance issues by heart. Bitcoin and other cryptocurrencies or initial coin offerings (ICO) by contrast so far have been shrugged off as nonsense and fraud.
But the rich and very rich increasingly want to know more. They are eager to learn about creative investment solutions with guaranteed returns, for instance in real estate or private equity. And, for the past year or so, they've also started inquiring about the chances and risks of investments in the crypto world.
The Times Are Changing
Swiss banks in general are keeping their distance to the crypto asset class, but the outlook for the business is looking increasingly bright: in a couple years and with more transparency available, cryptocurrencies will have turned into an asset class in its own right.
In a report for «Wealthmanagement.com», U.S. wealth manager Stephane de Baets compiled a list of questions that clients might have regarding cryptocurrencies and ICOs.
1. What's the Future of Currencies?
Currencies never have been investment instruments aimed at the preservation of assets. Traditionally, investments are being made in a bid to generate interest or a dividend, to make them «work» for the investor.
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