Crypto Investments in Italy to Hit 14,000B USD by 2023

Feb 19, 2019 at 14:26 // News
Coin Idol
By the year 2023, crypto assets will amass 14,000 billion USD with a growth rate of 59% compared to 2017.

It is predicted that, by 2023, alternative assets such as crypto (Bitcoin, Ripple, Ethereum, Litecoin and others), precious metals and other collectables will amass 14,000 billion USD of the Italian market with a growth rate (GR) of 59% as compared to 2017, gathered and managed by 34,000 investment firms and managers worldwide (up 21% compared to last year) - according to the Prequin report.

Italy is likely to join this international drift with Individual Savings Plans, that should lift and increase VC - venture capital (risk capital), Economyup reports. The country now needs to focus on implementing financial decrees. 

In a situation where the indicators that measure the country’s potential to generate wealth is uncertain and doesn’t cause the intensity of feeling among the public, then the future becomes unpredictable. But here comes the good news for investors, thanks to digital currencies investment is showing unstoppable growth. 

The  Prequin report, where over 120 institutional investors and around 300 portfolio manager across the globe took part in the interview, anticipates appealing and striking global growth in crypto assets. 

Reasons Behind the Estimates Include:

  • performances recorded by private funds with respect to, for instance, listed markets;
  • technologies, especially blockchain, that will enable consolidation of networks, assist investors/fund managers to invest and monitor their portfolios, hence lowering costs compared to listed markets;
  • A cumulative willingness from investors to control their investments, which is more possible and feasible with "private capital";
  • expansion of emerging markets

The assets that are under management are soaring in alternative assets since they have been able to show positive returns for investors as time passes. 

However, as Coinidol reported, banks in Italy are changing to blockchain technology due to the conservative response that is focusing at reducing technological developments may last in the market, according to Carmelo Barbagallo – head of supervision Bank of Italy.

The Opportunity for RIPs

In 2017, Italian RIPs gathered over 11 billion, collected 4.2 billion in 2018, and are forecasted to collect around 2.8 billion in 2019. RIPs are individual savings plans introduced in Italy by the 2017 Budget Law. Nevertheless, much will be collected depending on the decrees being implemented - as it will be soon issued. 

The optimism of players of the “open funds which manage RIPs” is that these limitations are now unstiffened, and the nervous Italian venture capital community claim that this very regulatory framework is confirmed. This will make it largely possible to allow major capital into the cryptoasset industry, which could help to raise the number of operators available. The equation is simple: more capital for fundraising = new operators are born = more capital for investing = greater number of investments in startups = greater probability of exit with returns to investors. 

In the long run, if alternative assets like cryptocurrency, venture capital & private equity accumulate returns, according to the Prequin report, then the legal purpose of 3.5% of RIPs in VC investment funds is highly welcome in Italy.

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