Luxembourg’s asset managers have been urged to engage with the crypto assets market or risk missing out on their investors’ demands.
The call follows the first market study of the Duchy’s developing digital assets industry conducted by the fintech association LHoFT Foundation along with PwC Luxembourg and the asset management trade group Alfi.
The study was commissioned as a result of the developments around crypto-assets in 2021, including the rising market capitalisation of bitcoin and its adoption as legal tender in some states as well as the emergence of the NFT market.
According to LHoFT, the aim of the study was to help asset managers clarify their position on crypto assets in the midst of growing interest from investors and international competition as well as contrasting regulatory developments around the globe.
The survey found a mixture of “enthusiasm and pragmatism” toward the asset class with 61% stating that they are already assessing, developing or providing crypto asset services.
LHoFT chief executive Nasir Zubairi, said that it is “critical for the asset management Industry to get to grips with and stay on top of the world of crypto-assets”.
Stephen Libby, Emea asset and wealth management leader at PwC Luxembourg added that Luxembourg’s position at the “forefront” of the asset management industry made it “crucial that local industry players maintain an updated view of emerging developments - and position themselves accordingly”.