Robert A. Stranger & Company Inc. The study reported that global alternative investment sales reached $31.6 billion in the first half of 2021 (all figures in US dollars). Furthermore, global alternative assets under management are projected to reach $15.6 trillion by 2024, according to investment data company Prekin.
The relative scarcity of cryptocurrencies has moved bitcoin as a more attractive alternative to gold, the study said, with the supply of the digital currency increasing by about 1.25% each year. Additionally, alternative collectors are using their winter knowledge, turning wine investments into “culturally and financially rewarding passion projects.”
“More than diversifying beyond stocks, cash and bonds, the ultra-high-net-worth, high-net-worth and emerging investment communities are increasingly focused on unique, culturally relevant and individually driven asset classes,” the study said. Selecting fast.”
The study noted that the “largely affluent class” (individuals with assets between $905,000 and $4.4 million) will more than double their alternative investment spending, from 14% to 32% “in the coming years”. although it was not specified. timeline.
“In the way of returns, sustainability and ownership, these commodities are as ambitious as they are financially rewarding – resulting in new communities where investors are more in tune with their business and ownership, and assets more closely tied to their identity. happened.”
The study highlights four emerging communities of investors it says will drive alternative investments in the future.
The first group is “identity investors,” who choose assets that align themselves with enthusiasts and strengthen their sense of identity. The group is much more than chasing cultural clout – it prides itself on spanning cultural capital, showcasing brand association in real time through asset classes and investments they choose. One example is a non-fungible token (NFT) platform.
The second group is the “philanthropists”. They are optimistic, enterprising activists who use their investments and assets as a starting point for doing good through things like sustainable initiatives and practices.
The third community is “thrill-seekers” who have an “appetite” for volatile investments, leading the emerging and unregulated world of crypto and NFTs.
“The group takes pride in its ever-evolving investment portfolio,” the study said. They want to achieve “first pioneer” prominence in the crypto space.
Fourth Community – “Heritage hunters” invest in their passions (like wine), watch them mature and reap the rewards of investment returns. The group sees their investments as an extension of themselves and something with which they are concerned.