Korean investors are said to be “finding it hard to resist the allure of crypto,” while several major domestic stock firms have recently started producing analyses on the market – implying that fund managers may be looking at the market.
According to Newspim, a high-ranking official at a major commercial bank who wished to remain anonymous said that crypto market investment was beginning to approach stock market volume, with wealthier investors still preferring gold over cryptocurrency.
However, bankers claimed that cryptocurrencies were closing the gap.
The number of client consultations wanting to invest [in crypto] is increasing, thus advisors are ‘assisting these clients in building a portfolio that meets their demands, according to an associate at NongHyup Bank's NH All100 investment arm.The advisor added:
“Crypto investors often return to crypto investment because they have experienced high returns in a short period of time.”
However, an advisor at a competing investment division of the bank said that many younger investors who had made healthy crypto profits were instead diversifying their portfolios by adding a variety of asset classes and stock market assets.
The news source stated that the Bank of Korea had increased the base interest rate twice in 2021, from zero to 1%, and that it had hinted at the potential for another rate increase this year.According to market predictions, the bank will raise interest rates three times this year, with the next increase most likely coming in the next few weeks. They believe that this might cause share prices to fluctuate – and potentially cause more upheaval in the cryptocurrency markets as a consequence.
Following a year marked by incredible growth, several South Korean securities firms have started reporting on the crypto market's state. For the first time, Hana Financial Investment, a subsidiary of KEB Hana Bank, yesterday dedicated a third of its monthly investment report to the cryptocurrency sector.
The New Year has seen a fresh trend among securities companies, with the majority now including some type of crypto component in their portfolios. The majority of these articles thus far have been cautious in nature, and when they give advise on crypto, they are being cautious to recommend modest investments as part of a larger portfolio of conventional assets. Some investors, on the other hand, believe that such cryptocurrency ventures will significantly enhance their portfolio performance.
The heads of big securities firms have shown an interest in the sector by referring to virtual assets in their New Year's speeches, according to a media source – with emphasis also on the blockchain, metaverse, and non-fungible token (NFT) spaces. The heads of Mirae Asset Securities, NH Investment & Securities, and Shinhan Financial Investment were all reported as noting how cryptocurrencies and the rest had generated new markets and enterprises.
Both media outlets observed that the idea appears to be global in some respect, with major financial advisors in Europe and North America advising investors to include a modest amount of cryptocurrency in their portfolios.