Cryptocurrencies have been under pressure for months. Nevertheless, the Berlin-based fintech Raisin (website) focuses on a crypto portfolio – intending to spread the risk as widely as possible. “There is no good or bad time to enter: with a long-term horizon, investing always makes sense,” says Kim Felix Fomm, Chief Investment Officer at Raisin.
Nevertheless, cryptocurrencies have plummeted massively in recent months. Bitcoin, the oldest cyber device, has plunged nearly 72% since its all-time high in November last year. The second most valuable digital currency, Ether, also fell in the same period. Recently, employee layoffs and bankruptcies at crypto platforms are exacerbating the crisis.
Fomm also knows, “Crypto is still an extremely volatile asset class. That’s why we don’t bet on individual stocks but want to spread the risk in our portfolio.”
Specifically, Raisin is adding a portfolio of the most essential cryptocurrencies to its investment division, which is automatically adjusted quarterly. According to the company, the criteria are the market capitalization of the respective digital currency compared to the overall size of the crypto market and liquidity measures such as daily turnover.