INVEST

Do crypto-assets represent a new investment opportunity?

One of the key considerations for investors interested in crypto-assets is their legal and regulatory framework, which has long varied from country to country and continues to evolve. European regulations and the gradual integration of these assets into the financial ecosystem are, however, helping to further structure this market and strengthen its oversight.

At the same time, interest in crypto-assets has grown considerably in recent years. Their adoption by a growing number of users, the emergence of new applications based on blockchain technology, and the interest shown by certain financial players demonstrate their evolution beyond a mere speculative phenomenon.

This growth, however, does not mean that crypto-assets are a risk-free investment. Their value can fluctuate significantly, and their technological, economic, and regulatory environment remains constantly evolving. For investors, it is therefore essential to understand both the opportunities and the risks before considering exposure to this asset class.

So, what role can crypto-assets truly play in an investment strategy? What are their uses, characteristics, and the main factors likely to influence their evolution? Let’s continue our analysis to better understand this rapidly changing world.

Gradual Recognition by States
The role of crypto-assets in the global economy has grown considerably in recent years. While their legal status still varies significantly from one country to another, many states have now implemented mechanisms to regulate their ownership, marketing, and the activities of specialized service providers. The taxation applicable to crypto-assets also differs across jurisdictions, particularly with regard to capital gains realized upon their sale.

Japan is among the countries that adopted a regulatory framework for crypto-assets relatively early. Bitcoin has been recognized there as a means of payment since 2017, while exchange platforms must comply with registration and compliance requirements with the Financial Services Agency (FSA). The country is simultaneously continuing its work on blockchain and digital currencies, while progressively strengthening the requirements applicable to industry players.

Russia has adopted a more restrictive approach. The holding and certain uses of crypto-assets are regulated by Russian law, while their use as a means of payment remains severely restricted. At the same time, authorities are continuing the development of the digital ruble, a central bank digital currency intended to operate alongside traditional forms of the ruble.

The United States is one of the world’s leading markets for digital assets. Its regulation relies on the intervention of several federal authorities and can vary depending on the nature of the crypto-asset and the activity involved. The Internal Revenue Service (IRS) applies a specific tax regime to transactions involving crypto-assets, while US authorities are continuing their work to clarify the framework applicable to different categories of tokens and service providers in the sector.

China has adopted a much more restrictive stance toward private cryptocurrencies. Activities related to crypto-asset transactions and platforms are subject to strict restrictions there, while Chinese authorities have simultaneously developed their own central bank digital currency, the digital yuan (e-CNY). This approach illustrates the distinction made by some countries between the development of blockchain technologies and the use of private crypto-assets.

Australia has gradually developed a regulatory framework for digital assets and related service providers. Crypto-assets are generally considered assets for tax purposes there, with specific rules concerning capital gains. Australian authorities are also continuing their work to strengthen consumer protection and further structure the sector.

Germany plays a significant role in the European digital asset ecosystem. German regulations are now aligned with the European framework applicable to crypto-assets, particularly through the MiCA regulation. The tax treatment of crypto-assets held by individuals depends, among other things, on the nature of the transaction and the holding period. Germany is also an important market for blockchain and tokenization activities.

Switzerland has established itself as one of the major European hubs of the blockchain ecosystem. The Zug region, often referred to as Crypto Valley, is home to numerous companies specializing in financial technologies and digital assets. The Swiss Financial Market Supervisory Authority (FINMA) has gradually established a regulatory framework to support crypto-asset activities while enforcing anti-money laundering and financial system protection requirements.

Estonia, known for its leadership in the digitalization of public services, also played a significant role in the initial development of the European digital asset ecosystem. After considering the Estcoin project, which was ultimately abandoned, the country strengthened its regulatory approach regarding crypto-asset service providers. Recent developments in the European framework have also led Estonia to gradually adapt its regulations to new common requirements.

These different approaches show that states are not all following the same path with regard to crypto-assets. Some prioritize innovation and gradual integration into the financial system, while others adopt stricter restrictions. This regulatory diversity underscores the importance of verifying the applicable legal framework before any transaction involving digital assets, particularly depending on the investor’s country of residence and the nature of the service used.

The Gradual Integration of Crypto-Assets into Traditional Finance

Over the past decade, crypto-assets have gradually gained visibility among traditional financial players. Initially considered a niche market primarily associated with technological innovation and speculation, they are now present in various components of the financial industry, including derivatives markets, asset management, payment infrastructure, and custody services.

A significant milestone was reached in December 2017 with the launch of Bitcoin futures contracts by the CME Group. Since then, the range of products linked to digital assets has expanded considerably and includes:

• Bitcoin and Ether futures and options;
• benchmark indices designed to track the Bitcoin and Ether markets;
• and small-scale contracts allowing different types of investors to access derivatives markets. These instruments are notably used by market professionals to manage their exposure, implement hedging strategies, or gain exposure to cryptocurrency price fluctuations without necessarily holding the underlying assets directly.

In parallel, several major international financial institutions have developed activities related to digital assets. Depending on their jurisdictions and authorizations, some offer trading services, investment products, institutional custody solutions, or blockchain-based infrastructures.

Some banks are also developing their own digital infrastructures. JPMorgan, for example, developed the JPM Coin, as well as other blockchain-based solutions primarily intended for payment and settlement transactions between institutional players. Other financial institutions are also exploring the opportunities offered by asset tokenization and the modernization of market infrastructures.

The Utility Settlement Coin (USC) project, originally launched by several international financial institutions, has also evolved into Fnality. This initiative aims to use blockchain-based infrastructure to facilitate certain settlements between financial institutions using digital representations of traditional currencies. It illustrates the banking sector’s growing interest in technologies that accelerate and modernize settlement processes.

This trend also extends to central banks. Several are studying or experimenting with central bank digital currencies (CBDCs). China, in particular, has developed the digital yuan, while the European Central Bank is pursuing its digital euro project. In the United States, the Federal Reserve continues to study the potential implications of a central bank digital currency.

The asset management sector has also gradually become interested in crypto-assets. International companies such as BlackRock, Fidelity, ARK Invest, and Grayscale have developed products that allow investors to gain exposure to Bitcoin or other digital assets within a regulated financial framework.

A particularly significant milestone was reached in the United States in January 2024 with the SEC’s approval of several Bitcoin ETFs for cash trading. This decision facilitated access to Bitcoin for a wide range of investors through traditional investment vehicles, without requiring direct ownership of the asset.

The evolution of recent years demonstrates that crypto-assets are no longer solely a phenomenon originating in the technological sphere. Their development has gradually led banks, asset management companies, exchanges, and financial infrastructures to integrate some of their characteristics and technologies into their operations.

This transformation does not, however, mean that crypto-assets exhibit the same characteristics or the same level of risk as traditional asset classes. Their gradual integration into global finance still raises numerous challenges concerning regulation, market stability, asset custody, and investor protection.

The current challenge, therefore, lies as much in the development of these new technologies as in their gradual integration within a suitable financial and regulatory framework.

A Continuously Evolving Ecosystem

Since 2017, the cryptocurrency market has experienced considerable growth, both in terms of valuation and adoption. The increasing number of users, the development of new infrastructure, and the gradual arrival of institutional players have profoundly transformed this ecosystem. By 2025, the global market capitalization of cryptocurrencies was projected to reach several trillion dollars, reflecting the growing importance of this new asset class.

This growth is also accompanied by a significant increase in the number of people holding cryptocurrencies worldwide. Various estimates available for 2025 point to several hundred million holders, although there are significant discrepancies depending on the calculation methods used. It is particularly important to distinguish between simply holding digital assets and their regular use, for example, through transactions carried out directly on a blockchain.

Bitcoin maintains a central position in this ecosystem and consistently represents a significant portion of the total market capitalization. Alongside it, Ethereum holds a major position, thanks in particular to its infrastructure enabling the development of decentralized applications, smart contracts, and numerous other digital projects. The world of crypto-assets also encompasses a multitude of other categories, ranging from specialized tokens to stablecoins, including various projects related to decentralized finance.

Despite the expanding possibilities for crypto-asset payments, their use remains largely oriented towards holding and investment rather than everyday spending. The development of payment infrastructures, cards linked to digital assets, and solutions enabling their conversion into traditional currencies are nevertheless contributing to a gradual convergence of the two ecosystems.

The market is simultaneously undergoing a phase of structuring and professionalization. The arrival of institutional investors, the development of regulated financial products, and the emergence of new forms of financing all attest to this evolution. Security Token Offerings (STOs), tokenization solutions, and certain mechanisms stemming from decentralized finance (DeFi) are opening up new possibilities for the financing and digital representation of assets.

The rise of ETFs linked to crypto-assets is also a significant development. These instruments allow some investors to gain market exposure within a traditional financial framework, without necessarily having to directly manage the custody of the digital assets. This development helps broaden access to the sector and gradually bring crypto infrastructures closer to conventional financial markets.

The crypto-asset market, however, remains characterized by rapid technological, regulatory, and financial evolution. Its growth should therefore not be considered a guarantee of future performance. For investors, the challenge lies in understanding the specific characteristics of each asset, the uses associated with the different technologies, and the risks associated with holding them before integrating these instruments into a wealth management strategy.

Investing in the Heart of Digital Innovation

The rise of crypto-assets is closely linked to the development of new digital technologies, foremost among them blockchain. This infrastructure enables the recording, sharing, and verification of information according to rules defined by a protocol, thus paving the way for numerous applications in sectors far beyond finance.

Traceability is one area in which blockchain technology offers potential benefits. In logistics and supply chains, certain information relating to production, transport, or distribution can be recorded on a shared ledger. These systems can help improve the tracking of goods and the verification of certain stages of a process, particularly in sectors where authenticity and traceability are of paramount importance.

Blockchain applications also extend to digital services and decentralized economic models. Projects have sought to use these technologies to directly connect users and service providers, with the aim of reducing dependence on certain traditional intermediaries. Initiatives such as Arcade City, which explored a decentralized mobility model from its inception, illustrate this desire to rethink certain services using blockchain technologies and smart contracts.

Since these initial experiments, the ecosystem has evolved considerably. Developments around smart contracts, tokenization, decentralized finance, and decentralized applications have multiplied the possibilities for using blockchain infrastructure.

This evolution makes it possible to envision new models for managing, exchanging, and transmitting digital value. However, it does not mean that all blockchain applications are necessarily more transparent or efficient than traditional solutions. Each project must be evaluated based on its technology, its utility, its level of adoption, and its specific risks.

For investors, the appeal of crypto-assets therefore also lies in their potential exposure to a constantly evolving technological ecosystem. Beyond the mere evolution of prices, this technological dimension constitutes one of the essential elements for understanding the development prospects and the transformations that digital assets can bring to the economy.

Conclusion

Should you invest in crypto-assets? The question deserves more than a simple yes or no answer. As with any asset class, the suitability of an investment depends primarily on understanding the product, the investor’s profile, their objectives, and their ability to accept the associated risks.

Crypto-assets remain particularly volatile instruments. Significant price movements can occur very quickly, sometimes upwards, sometimes downwards. This volatility can generate opportunities, but it also implies a significant risk of loss. Periods of euphoria can also encourage speculative behavior and attract investors who are insufficiently informed about the characteristics of the assets they are investing in.

Nevertheless, the digital asset ecosystem continues to grow. Some blockchain projects offer technologies and applications that have the potential to gradually transform financial and digital infrastructures. Their potential must, however, be assessed individually, taking into account their technology, adoption rate, business model, regulatory environment, and the specific risks of each project.

In a wealth management strategy, crypto-assets can potentially be a diversification component, provided their risk level is compatible with the investor’s situation and objectives. It is generally preferable to consider an exposure corresponding to a portion of capital whose potential loss would not jeopardize essential financial needs or short-term projects.

Beyond their financial dimension, crypto-assets are part of a broader technological transformation. Blockchain, smart contracts, tokenization, and Web3 are contributing to the development of new infrastructures designed to change certain ways of creating, transferring, and representing digital value. Similar to the gradual impact the internet has had on the economy and its uses, some of these technologies could contribute to the lasting evolution of numerous sectors.

Ecosystems such as Ethereum, Solana, Ripple, IOTA, and many other projects are already exploring various applications in the fields of finance, payments, tokenization, logistics, and digital infrastructure. It remains difficult to determine today which cryptocurrencies will become established in the long term, but their development reflects a technological transformation whose implications extend far beyond the mere price fluctuations of cryptocurrencies.

The key for investors is therefore not simply whether cryptocurrencies will rise, but understanding what they are buying, why they are buying it, and what role this investment can reasonably play in an overall strategy.

Why include gold in an investment strategy?

For millennia, gold has held a unique place in economic and wealth management history. Used as a medium of exchange, a store of value, and a benchmark asset, it has weathered numerous periods of economic and monetary upheaval without losing its importance to investors.

Even today, gold retains a special place within diversification strategies. Its behavior can differ from that of other asset classes, leading some investors to include it in their portfolios to better spread the various sources of risk.

In an environment marked by evolving monetary policies, inflation, geopolitical tensions, and economic cycles, gold continues to attract investor interest. Whether held in physical form or through financial products, it constitutes an asset whose historical characteristics and international recognition explain its enduring place in wealth management strategies.

Investing in gold does not, however, guarantee its value or ensure that it consistently moves against the market. Like any investment, its price can fluctuate, and its suitability should be assessed based on each investor’s objectives, investment horizon, and risk profile.

Gold: A Sought-After Asset in Times of Uncertainty

One of the characteristics that contributes to gold’s historical appeal lies in its role within wealth diversification strategies. During periods of economic, financial, or geopolitical tension, investors regularly turn their attention to assets traditionally considered instruments for preserving and diversifying wealth.

Stock market crashes, geopolitical tensions, health crises, or difficulties encountered by certain financial institutions can thus rapidly alter market behavior. In these uncertain environments, gold can be one of the assets sought after by investors wishing to diversify their exposure and reduce their dependence on certain investment categories.

Why does gold retain a special place during times of crisis

• An asset without direct credit risk: unlike a bond or bank debt, holding physical gold does not depend on the solvency of an issuer to represent its value.
• Potential diversification: the price of gold does not behave identically to that of stocks or bonds and can, depending on the market conditions, contribute to diversifying an overall asset allocation.
• International recognition: gold is traded on the world’s major markets and benefits from historical recognition, giving it a special place in trading and wealth management.

An asset closely watched during major crises

The crises of 2008, 2020, and 2022 illustrate the attention paid to gold during periods of significant economic and financial uncertainty. However, its performance is not always inversely proportional to that of equity markets: like any listed asset, its price can also experience periods of decline, particularly when liquidity conditions, interest rates, or investor expectations change.

The appeal of gold therefore lies less in a promise of automatic protection against losses than in its ability to constitute, depending on the circumstances, a complementary component within a diversified investment strategy.

Gold: A Sought-After Asset in the Face of Inflation and Currency Erosion

Gold has long held a special place in wealth preservation strategies. Its scarcity and tangible nature make it a frequently sought-after asset when investors consider the evolution of currency purchasing power and the consequences of inflation.

Its appeal lies in one fundamental characteristic: unlike currencies, whose supply can fluctuate according to monetary policies and the functioning of the financial system, the quantity of gold available increases relatively slowly. This difference helps explain why the precious metal is often considered an asset that can play a role in long-term wealth preservation.

Why can gold help preserve purchasing power?

• A naturally limited resource: Extracting new quantities of gold requires time, significant investment, and the exploitation of resources available in limited quantities.
• A relatively inflexible supply: Mining production cannot be quickly increased to meet a sudden surge in demand.
• International recognition: Gold is traded on global markets and retains recognized value in many economies.
• A diversification asset: Its performance can differ from that of currencies, stocks, or bonds, making it a valuable addition to a diversified portfolio.

A Historical Role in the Face of Monetary Erosion

Over very long periods, gold has maintained a significant capacity to retain its recognized value despite transformations in monetary systems. This characteristic explains, in particular, why it is traditionally associated with preserving wealth when the purchasing power of currencies declines.

However, the price of gold is not directly linked to inflation and can experience periods of both increase and decrease. Interest rates, economic expectations, monetary policies, investor demand, and the geopolitical context can also strongly influence its price.

Gold can therefore be considered as a complementary component of a wealth management strategy aimed at diversifying the risks associated with inflation and currency fluctuations. It does not, however, constitute a guarantee against the loss of purchasing power, and its suitability should be assessed according to each investor’s specific time horizon and objectives.

Gold: A Tangible Asset in Wealth Management

Unlike purely digital assets or certain financial instruments representing a debt, physical gold has a unique characteristic: it is a tangible asset that the investor can directly own. This material dimension helps explain the historical importance of the precious metal in wealth management strategies.

What are the main advantages of physical gold?

• Direct ownership: subject to the chosen storage method, the investor directly owns the coins or bars that constitute their assets.
• No credit risk on the asset itself: unlike a debt or bond, the intrinsic value of the metal does not depend on an issuer’s ability to repay a debt.
• Various storage options: gold can be stored in a specialized vault, with a professional, or, depending on the investor’s preferences and precautions, in a suitable private location.
• Possible estate planning: coins and bars can be integrated into an estate planning strategy, subject to compliance with applicable civil, tax, and inheritance laws.

This physical dimension distinguishes gold from many financial and digital assets. It can be an attractive feature for investors who wish to diversify their portfolio with a tangible asset, recognized internationally, and able to be held independently of the traditional form of financial investment.

Holding physical gold, however, involves certain practical considerations, particularly regarding storage, insurance, transportation, authentication, and liquidity. These factors must be taken into account before any acquisition to ensure that the chosen method of holding gold aligns with the investor’s wealth management objectives.

Gold: A Lever for Wealth Diversification

Diversification is a fundamental principle in building a balanced portfolio. By spreading investments across different asset classes, investors can aim to limit their dependence on the performance of a single market or economic environment.

From this perspective, gold can play a complementary role alongside stocks, bonds, real estate, or other assets. Because its performance is influenced by factors that are not always the same as those of traditional financial markets, it can contribute, depending on the period, to diversifying the risk profile of an overall portfolio allocation.

What can gold contribute to a diversified portfolio?

• Diversifying risk sources: Gold’s price fluctuates under the influence of specific factors such as interest rates, monetary policies, global demand, and the geopolitical context.
• Contributing to portfolio balance: Its behavior can differ from that of stocks or bonds, thus complementing certain allocations heavily exposed to financial markets.
• Complementing real estate and financial assets: Physical gold provides a tangible dimension that can be different from investments based on financial or real estate assets.
• Finding a place in a long-term wealth management strategy: Its international recognition and limited availability make it a frequently included asset in diversification strategies.

However, the proportion of gold to include in a portfolio depends on numerous parameters: the investor’s objectives, investment horizon, financial situation, risk tolerance, and overall asset composition. Some investment approaches suggest an allocation between 5% and 15%, but this range is not a universal rule and should be assessed on a case-by-case basis.

The goal is therefore not to replace other asset classes with gold, but to consider it as a potential component of a diversified portfolio. A well-considered allocation across different investment categories can help build a portfolio better suited to various economic cycles and the investor’s objectives.

A market supported by diverse demand

The global gold market benefits from demand from sectors and players with very different profiles. This diversity helps to support precious metal trading and partly explains gold’s enduring place in the global economy.

The main drivers of global demand

• Central banks: Many central banks hold gold in their reserves and can make purchases to diversify their reserve assets and increase their exposure to an internationally recognized asset.
• Jewelry: Jewelry manufacturing has historically been one of the main markets for gold, driven by particularly strong demand in several major global economies.
• Technological and industrial applications: Thanks to its physical and chemical properties, gold is used in various fields, including electronics, certain medical equipment, advanced technologies, and various industrial applications.
• Individual and institutional investors: Physical gold and financial products linked to the precious metal attract different types of investors, especially when economic or financial conditions increase their interest in diversification.

This multiplicity of uses and actors helps maintain structural demand for gold. The drivers of this demand are not all the same: jewelry consumption, industrial needs, central bank reserve policies, and investment decisions can all evolve independently.

This diversity is one of the defining characteristics of the gold market. However, it does not mean that demand is immune to economic cycles: each segment can fluctuate depending on the global context, price levels, financial conditions, and the behavior of consumers and investors.

For an investor, this market depth is nonetheless an important factor to consider when viewing gold as a component of their portfolio diversification strategy.

A Limited Resource: Scarcity at the Heart of the Gold Market

Gold possesses a fundamental characteristic that distinguishes it from many other assets: its physical availability is inherently limited. Extracting new quantities depends on finite mineral resources and requires significant investment, suitable infrastructure, and often considerable development time.

Why is gold scarcity an important factor?

• Gradual mining production: the new quantities extracted each year represent only a fraction of the gold already produced worldwide.
• Increasingly complex resources to exploit: extraction can require growing investments, especially as mining operations move to more difficult-to-access deposits.
• Significant development times: several years can be required between the identification of a resource and the start of production at a new mining project due to studies, investments, permits, and infrastructure construction.
• Limited reserve renewal: the discovery and development of new deposits are complex processes that prevent a rapid increase in global production.

This combination of a limited resource and demand from numerous sectors helps explain the enduring economic interest in gold. Central banks, industry, jewelry, and investors, among others, contribute to global demand, the components of which evolve according to various factors.

Scarcity alone, however, does not guarantee price appreciation. The price of gold also depends on numerous factors, including interest rates, monetary policies, economic conditions, central bank purchases, investment demand, and the geopolitical context.

In the long term, the limited nature of this resource is nonetheless a fundamental element to consider when understanding gold’s unique role in the global economy and in wealth diversification strategies.

An international market and high liquidity

Gold enjoys a unique position in international markets thanks to its significant market depth and widespread global recognition. It can be traded in various forms, from physical gold to financial instruments that provide exposure to the price of the precious metal.

What are the advantages of this international dimension for investors?

• Extensive resale possibilities: Gold benefits from an international market and can be sold to numerous specialized professionals, subject to market conditions and the type of product held.
• International listing: The price of gold is tracked on major financial exchanges and serves as a benchmark for transactions carried out in many regions of the world.
• Accessible information: Reference prices and market developments are widely monitored and published, giving investors significant visibility into market conditions.
• Significant market depth: The large trading volumes and the diversity of participants contribute to making gold one of the most closely watched commodity markets internationally.

This global dimension is one of gold’s main advantages. Unlike some assets whose negotiability may depend heavily on a local market or a specific intermediary, precious metals benefit from an international network of traders, financial institutions, central banks, investors, and specialized players.

However, it is important to distinguish the liquidity of the gold market from that of an individually held product. The ease and time required to resell can depend on factors such as the form of the gold, its weight, its level of certification, its storage location, and the terms offered by the intermediary during the transaction.

This international recognition and market depth nonetheless contribute to making gold a particularly closely watched asset, whose negotiability is an important element in a portfolio diversification strategy.

Conclusion

Investing in gold can be part of a long-term diversification and wealth-building strategy. Its history, tangible nature, relative scarcity, and the diversity of market participants give it a unique position among asset classes.

In periods of economic, monetary, or geopolitical uncertainty, gold may also be sought after by investors looking to diversify their exposure and reduce their reliance on certain investment categories. However, it does not provide automatic protection against losses, and its price can fluctuate.

Gold’s appeal lies in its ability to complement other components of a portfolio, whether financial, real estate, or digital assets. When integrated in a way that aligns with the investor’s profile, objectives, and time horizon, it can contribute to building a more diversified asset allocation that is better suited to different economic environments.

In a constantly evolving economic context, gold thus remains a benchmark asset, recognized internationally and likely to retain a lasting place in wealth diversification strategies.

Company in the legal form of a limited liability company, duly registered and regulated according to the financial standards in force in Luxembourg

DGB Capital Management

• Head office: 1, route de Mondorf, L-5470, Wellenstein, Luxembourg

OPENING HOURS

Monday to Friday, 8am to 12pm
Monday to Thursday, 2pm to 7pm