Major South Korean Securities Firms, Investors Warming to Crypto

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South Korean investors are “having a hard time resisting the allure of cryptocurrencies,” while several leading national securities firms have suddenly started producing reports on the sector, indicating that fund managers may be taking a look at the assets. markets.

According to Newspim, an official at a leading commercial bank who asked to remain anonymous stated that investment in the cryptocurrency market was beginning to rival activity in the stock market, although wealthier investors still prefer gold to cryptocurrencies.

However, the bankers hinted that cryptocurrencies were closing the gap.

An advisor in NongHyup BankNH All100’s investment arm said that “the number of inquiries from clients who want to invest [in crypto] it is “increasing,” leading advisers to “provide these clients with a portfolio that meets their needs.”

The advisor added:

“Investors in cryptocurrencies often return to investing in cryptocurrencies because they have experienced high returns in a short period of time.”

An advisor in a rival investment division of the bank. ShinhanHowever, it stated that many younger investors who had made healthy profits in cryptocurrencies were choosing to diversify their portfolios with a variety of asset classes and investments in the stock market.

The media reported that the central Bank of korea it had raised the base interest rate twice from zero last year to the 1% level, and that it had “hinted at the possibility of another rate hike” this year. Market analysts say they expect the bank to raise interest rates up to three times this year, with the next hike likely to come in the next few weeks. This, they say, could lead to a “tightening” in share prices and possibly more movement in the crypto markets as a result.

According to Digital Today, a large number of South Korean securities providers have started reporting on the state of the crypto markets after witnessing “explosive growth” last year. Hana financial investment, a wing of the KEB Hana banking group, yesterday dedicated a third of its monthly investment report to the crypto space for the first time.

The news outlet noted that the new year has seen a new trend for securities providers, with most now including some kind of section dedicated to cryptocurrencies. Most of these reports are so far relatively conservative in nature, and when giving advice on crypto, care is taken to advise “small” investments as part of a larger portfolio of conventional assets. However, some claimed that such crypto investments could “greatly enhance the performance” of investors’ portfolios.

The “heads of large securities firms” appear to have “expressed interest in the sector by mentioning virtual assets in their New Years addresses,” the news outlet noted, also paying attention to the blockchain, metaverse and token. non-expendable (NFT). spaces. The heads of Mirae Asset Values, NH Investments and Securities and Shinhan’s aforementioned financial investment was cited as noting how cryptocurrencies and the rest had “created new markets and businesses.”

Both outlets noted that the trend appears to be global to some extent, claiming that major financial advisers from Europe and North America had given similar advice on including a small number of cryptocurrencies in investment portfolios.


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