Investor interest in crypto-linked structured products is rising, prompting private banks and asset managers to expand their offerings. Focus is mainly on crypto exchange-traded funds (ETFs), aiming to blend traditional investment with the growing digital asset market, according to Marex Financial Products’ Franck Fayard.
The surge in investor interest for crypto-linked structured products has caught the attention of private banks and external asset managers (EAMs), leading to an expansion in their offerings. This trend is largely fuelled by the increasing popularity of digital assets, with structured products now being seen as an attractive avenue to engage with the cryptocurrency market.
Franck Fayard, APAC head of Marex Financial Products, has noted that there’s a marked rise in the designing of products that incorporate cryptocurrency components. He specifically pointed out that while both coins and crypto exchange-traded funds (ETFs) are on the table, the current focus is squarely on crypto ETFs. Such products not only provide investors with a way to access the cryptocurrency market but also add a layer of structural complexity that some investors find appealing.
As these private banking institutions apply their financial ingenuity, many are looking to create investment structures that offer both exposure and mitigation of risks associated with the volatility that the crypto market is well-known for. As the crypto landscape evolves, structured products are becoming an essential facet of wealth management strategies, especially for those looking to diversify their portfolios without direct exposure to the underlying assets.
Investors are increasingly drawn to these innovative solutions since they allow for a mix of traditional investing with modern digital assets. Moreover, such developments present a unique opportunity for banks and asset managers to capture a lucrative segment of the market, further solidifying their relevance in today’s investment scenery. The future looks promising for structured products linked to cryptocurrencies, as institutions pivot to meet the evolving demands of their clientele.
