EmergentX Digital Asset Outlook 2022 - The Year of Consilience

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Theme 1. Digital Asset Economy

Digital Asset Outlook 2022

1.4

Digital asset as an investable asset class

It has become more acceptable to treat digital assets as an investible asset class with the high return potential. Investors need to be aware of the difference between digital assets and traditional asset classes, the investment risks, diversification benefits and trading instruments when investing in digital assets.

Figure 9. Drivers of expected future return by Asset Class Equities

Bonds

Cryptoassets

Corporate profits

Economic growth

Investor adoption

Economic growth

Interest rates

Millennial wealth

Interest rates

Issuance

Regulatory developments

Productivity

Weakening trust in authorities Institutionalization

Source: CFA Cryptoassets report, BitWise Asset Management

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