Shortly before Christmas, Bain & Co and Onyx by JP Morgan published a report on the $400 billion revenue potential from alternative fund tokenization. The figure is based on wealthy investors shifting a proportion of their assets into alternatives.
While people tout tokenization as a tool to democratize investment, the reality is that alternative assets are often inappropriate for retail investors. However, wealthy investors are a different story.
To date alternative asset managers have struggled to expand their reach with high net worth individuals (HNWI), who have just 5% of their wealth in alternatives. That’s despite roughly half of global investable funds sitting in private rather than institutional hands. Currently institutions make up well over 80% of the alternatives investor base.
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