Major South Korean Securities Firms, Investors Warming to Crypto

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South Korean investors are finding it hard to resist the allure of cryptocurrencies, while a number of leading local securities firms have suddenly started issuing sector reports – suggesting that fund managers may be keeping an eye on the markets.

According to Newspim, an official at one of the leading commercial banks, who asked not to be named, stated that investing in the cryptocurrency market is beginning to rival the activity of the stock market — even though wealthier investors still prefer gold over cryptocurrencies.

Bankers have hinted that cryptocurrency is closing the gap.

Consultant in NongHyup BankThe investment arm of NH All100 said that “the number of consultations from clients wishing to invest [in crypto] It is “increasing,” prompting advisors to “provide these clients with a portfolio that meets their needs.”

The advisor added:

Cryptocurrency investors often return to investing in cryptocurrencies because they have generated high returns in a short period of time.

Adviser in a competitive investment department for the bank ShinhanHowever, he mentioned that many young investors who made good profits in the cryptocurrency space chose instead to diversify their investment portfolios through a combination of asset classes and stock market investments.

The media outlet indicated that the central Bank of Korea He had raised the benchmark rate twice from zero last year to the 1% level – and had “hinted the possibility of another rate hike” this year. Market analysts say they expect the bank to raise interest rates three times this year, with the next hike likely to come in the next few weeks. They say this could lead to an “adjustment” in stock prices – and possibly further movement in the crypto markets as a result.

According to Digital Today, a large number of South Korean securities providers have begun reporting on the state of the cryptocurrency markets after experiencing “enormous growth” last year. Here for financial investment, which is a suite of KEB Hana A banking group, yesterday dedicated a third of its monthly investment report to the crypto space for the first time.

The media outlet noted that the new year has seen a new trend for securities providers, with most of them now including some sort of section dedicated to cryptocurrency. Most of these reports so far are relatively conservative in nature, and when they do advise on cryptocurrencies, they are keen to advise “small” investments as part of a broader range of traditional assets. However, some have claimed that such crypto investments can significantly “improve the performance” of investor portfolios.

It appears that “heads of large securities firms” have “expressed an interest in the sector by mentioning virtual assets in their New Year’s headlines,” the media outlet noted — also with an interest in the blockchain, metaverse, and non-fungible token (NFT) spaces. heads Mira Securities AssetAnd NH Investments & Securities The aforementioned Shinhan Financial Investment has been quoted as writing about how cryptocurrencies and the rest have “created new markets and businesses.”

Both media outlets noted that the trend appears to be somewhat global, claiming that major financial advisors in Europe and North America have offered similar advice on including a small amount of cryptocurrency in portfolios.

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