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NEWSLETTER | 12 Mar 2021

Investors back bitcoin, while buy-to-let loses appeal

Cryptocurrencies have been grabbing plenty of headlines recently, and according to a new survey by Nickel Digital Asset Management this week, institutional investors and wealth advisers alike are committed to increasing their investment in bitcoin, the granddaddy of digital assets.

The survey of 50 institutional investors and 50 wealth managers from the US, UK, Germany and Switzerland also reveals that between now and 2023, 72 per cent expect professional investors in general to invest in bitcoin for the first time or increase their exposure.

For those new to the delights of digital assets, our guest article this week by a team from Withers, addresses four key cryptocurrency investor concerns covering some of the fundamental legal and regulatory issues involved.

While bitcoin investing is on the up, another more traditional asset class is losing its appeal, according to new research from FJP Investment which reveals that more than two-thirds of UK property investors believe that the buy-to-let market is less of a draw than it once was. The vast majority (71 per cent) blame tax reforms and new regulations introduced since 2016, with two thirds (67 per cent) saying that in the future they will consider other forms of property investment that do not incur the same taxation and complexity as buy-to-let and second home purchases.

"Time will tell if there is indeed a mass exodus of investors from the buy-to-let sector, but this new research underlines the fact that there is far less appetite to be a landlord," says Jamie Johnson, CEO of FJP Investment.

The coronavirus pandemic meanwhile, has given rise to a new breed of investor, says Nutmeg – one who is more active and more engaged with their investments and keen to do good with their money as well as generate returns. Nutmeg's research reveals that one in four (25 per cent) 25-34 year-olds say they are much more likely - since the virus outbreak - to seek out socially responsible investments, compared to 11 per cent of people overall, and just 8 per cent of people aged 45 to 54.

On Monday, International Women's Day, we heard from Debbie Lumsden, private clients director and the sole female board member at VG, one of Jersey’s largest independent trust companies, on why promoting diversity in general – personality, background and experience, as well as gender and race – is so important in creating a truly inclusive workforce. "I wouldn’t want a job where I was appointed because I was female. I want to be there because I’m good at my job and have earned my place," she writes.

And finally, in another guest article, Simone Westerhuis, Managing Director at LGB Investments, provides some advice – and a few words of warning – for investors considering adding private debt funds to their portfolios in a bid to boost returns. "In in a booming market of private debt fund providers, investors should make sure they choose those with the expertise to handle today’s highly complex credit landscape," writes Westerhuis.

Wealth Adviser.

Wealth managers plan to increase exposure to bitcoin

Thu | 11 Mar 2021, 19:27

A survey of institutional investors and wealth managers who already engage with bitcoin reveals that 85 per cent plan to increase their investment in the cryptocurrency over the next two years.

Thu | 11 Mar 2021, 19:27

There has been a matching extraordinary price increase in one of the most volatile investment asset classes: cryptocurrencies, and especially bitcoin. Here we consider four important questions for cryptocurrency investors and some of the fundamental legal and regulatory crypto issues.

Thu | 11 Mar 2021, 19:27

More than two thirds of UK property investors believe the buy-to-let market has lost its appeal, new research from FJP Investment has revealed.

Thu | 11 Mar 2021, 19:27

The pandemic is breeding a new generation of active and purpose-driven investors in their late 20s and early 30s who are keen to do more and do good with their money, according to new research published today by Nutmeg.

Thu | 11 Mar 2021, 19:27

As the sole female board member at VG, one of Jersey’s largest independent trust companies, you might expect Debbie Lumsden (pictured), private clients director, to implore companies to recruit more women to senior positions. Instead, Lumsden argues that diversity extends beyond gender and that gender itself is ‘slightly irrelevant’ when it comes to creating a truly inclusive workforce.

Thu | 11 Mar 2021, 19:27

By Simone Westerhuis, Managing Director at LGB Investments – Investors’ continuous search for attractive returns and stable portfolio yields has been made only more challenging by the pandemic. With central bank stimulus measures dislocating bond markets and companies slashing dividends, investors are finding it harder than ever to implement effective income strategies.

Global ETF launches 04-11.03.21

Thu | 11 Mar 2021, 19:27

Cryptocurrency funds were the main theme of the week, with a new bitcoin fund, the CI Galaxy Bitcoin ETF, now trading on the TSX. ETC group meanwhile, listed an ether ETP, and 21Shares launched ETPs tracking both ether and bitcoin. Other newcomers include the first US-listed hydrogen ETF from Defiance ETFs, plus Europe’s first carbon avoidance solutions and 5G digital infrastructure ETFs from HanETF on the Swiss Stock Exchange. Elsewhere, two fund sponsors turned their attention to Asia, with new funds from Xtrackers and Invesco offering access to emerging Asian markets and Chinese companies, respectively.