Bitcoin (BTC) has shattered its previous limits, surging past $120 000 to a new all-time high. But this rally isn’t a repeat of past cycles. Instead, it’s built on a bedrock of regulatory clarity and growing institutional adoption.
Sean Sanders, CFA Charterholder and the founder and CEO of alternative investment app Altify (FSP 52727), outlines that this maturation is the key difference in this crypto chapter.
“The wild west chapter of crypto is fast closing,” says Sanders.
“What we’re seeing now is the result of a fundamental shift. While clear crypto regulations already exist in South Africa, the EU, and in over 35 other countries worldwide, the landscape is now shifting decisively as the United States – the world’s largest economy and financial market – creates its own predictable regulatory framework for digital assets.
“This regulatory certainty reduces legal, reputational, and compliance risk for large-scale institutional investors, enabling them to allocate to digital assets, moving this asset class into the financial mainstream.”
No fleeting moment
This isn’t a fleeting moment but the continuation of a powerful long-term trend. Over the last 13 years, Bitcoin has delivered an astonishing 99.25% compound annual growth rate.
Its Sharpe ratio of 0.82, a measure of risk-adjusted return, tells a story of remarkable performance. To put that into perspective, over a similar long-term period, Gold has posted a Sharpe ratio of around 0.47, while the S&P 500 sits at about 0.66.
While past performance is no guarantee, this highlights the powerful rewards Bitcoin has offered to investors who can navigate its volatility.
Source: Altify
Oncoming wave of capital
The institutional wave of capital entering crypto is no longer theoretical. We’re seeing major banks offer crypto custody, financial advisors adding crypto to their clients’ portfolios, pension funds lobbying to have crypto approved as an asset they can allocate to, and publicly listed companies adding digital assets to their balance sheets.
What seemed unimaginable 24 months ago is now unfolding faster than even the most bullish crypto investors expected.
This period is reminiscent of the late 1990s when tech stocks transitioned from a niche venture capital play into a core institutional holding. The arrival of ‘smart money’ did more than just lift the well-known leaders – it created a tide that lifted the entire sector as capital began searching for the next big thing.
“Remember, we’ve only seen Bitcoin and XRP hit all-time highs. Most other crypto assets, such as Ethereum [ETH], Solana [SOL], and BNB have not broken through their previous highs,” says Sanders.
“If we see a similar pattern to crypto bull markets of the past, we can expect to see Bitcoin lead the charge as it’s doing today – then capital starts hunting for higher returns in the smaller emerging projects, the ‘altcoins’. This is where you find the market’s most explosive gains, but it’s also a minefield of risk. Guessing which projects will succeed over the long term is a gamble.”
Strategy
This is where discipline becomes crucial. Instead of guessing which projects will become the next success story and ‘FOMOing’ into the market, a smarter strategy is to own a diversified crypto portfolio.
Professional investors across all asset categories build portfolios – not concentrated bets on one or two assets.
This is exactly how investors should approach the volatile market of crypto.
“Holding some BTC and ETH are the natural starting points for most investors, but they are just the tip of the iceberg,” says Sanders.
“Crypto is one of the fastest-moving areas in finance, and it’s nearly impossible to keep up. That’s why a diversified portfolio is crucial. It allows you to invest in the growth of the entire crypto economy, rather than trying to guess which individual project will be the next big thing.”
Altify offers a selection of 13 unique Crypto Bundles. These are exchange-traded fund (ETF) or index fund-like investments that provide you with diversified exposure to the wider crypto market or emerging crypto sectors, like decentralised finance (DeFi), all through a single investment.
You can view the impressive 12 month returns of their top performing Crypto Bundles below.
Source: Altify
The crypto market is constantly evolving. Today’s market leaders might not be tomorrow’s, and new, innovative projects can quickly rise through the ranks.
A ‘buy and hold’ portfolio can quickly become outdated, weighed down by poor performers while missing out on the growth of new high performers.
Looking at the table below we can see just how much the 10 largest crypto assets have changed over the past nine years.
Source: CoinMarketCap
This is why Altify’s Crypto Bundles automatically update every month.
This automated process does two powerful things.
First, it takes profits from assets that have grown in value, locking in those gains.
Second, and just as importantly, it systematically replaces assets that have fallen out of the top ranks with the new, higher-performing projects that have taken their place. This ensures your portfolio is always up to date and optimised to hold the current market leaders, removing emotion and guesswork from your investment strategy.
Sanders shares that: “Altify is offering a limited time promotion where new Altify users who register with the promo code Plus2 can get a 2% cash bonus on their first investment or crypto deposit – up to R100 000.” To learn more, you can contact Altify’s customer support team at [email protected].
The outlook
With sustained crypto ETF inflows expected to surpass 2024’s record-breaking numbers and the strongest regulatory tailwinds in crypto’s 16-year history, the case for continued growth in digital asset adoption is strong.
But for Sanders, the real story goes beyond Bitcoin’s price. He sees the most significant shift as the fundamental digitisation of finance itself.
“The long-term opportunity isn’t about friendlier regulation or speculating on crypto prices, rather it’s about all financial assets becoming digital,” he explains.
“When you hear leaders of the world’s largest asset managers calling the ‘tokenisation of securities’ the next generation for markets, you know we’re at an inflection point.”
The digitisation of finance is accelerating on two key fronts. First, real-world assets (RWAs) like property and private credit are rapidly being tokenised on the blockchain. Second, the financial ‘rails’ needed to support them – USD stablecoins – are seeing explosive growth.
With transaction volumes already closing in on Visa’s stablecoins, this shows just how quickly this new system is scaling, signalling that the room for growth ahead is still immense.
Source: rwa.xyz
The era of asking if crypto would be adopted is over. With institutional capital arriving and the world’s largest assets beginning their migration on-chain, the question has now become how fast it will be integrated.
We are leaving the period of speculation and entering the era of utility, a shift that will redefine how value is stored, transferred, and owned worldwide.
About Altify
Altify (FSP 53289) is a Cape Town-based alternative investment platform that specialises in offering tokenised investments across private credit (debt funds), crypto and ETF-style crypto portfolios. Altify offers an easy-to-use mobile app and web platform where anyone can start investing from just R150. Altify is backed by JSE-listed specialist investment group Sabvest, 54 Collective, and other global investors.
Risk Disclosure
Altify SA Capital (Pty) Ltd (FSP 52727) and Altify SA DAS (Pty) Ltd (FSP 53289) are both authorised financial services providers (FSPs).
This article is provided solely for informational purposes. The opinions expressed herein do not constitute investment advice or recommendations, nor should they be regarded as such. This document does not represent an offer to buy or sell, or a solicitation of an offer to buy or sell, any of the investments mentioned.
Altify operates as a brokerage service facilitating the reception and transmission of crypto asset orders, without providing investment advice or personalised recommendations. While Altify advocates for the broader accessibility of cryptocurrencies, they may not be suitable for every investor.
It is important to consider your investment goals, experience level, and seek independent financial advice where necessary. Altify strongly recommends conducting comprehensive research before investing in cryptocurrencies.
Investors are solely responsible for their own investment decisions. Considering the high volatility associated with cryptocurrencies, please evaluate your financial circumstances carefully before engaging in transactions. Cryptocurrencies carry a high risk, with potential for both significant gains and losses. Investing in cryptocurrencies may lead to a total loss of capital.
Past performance is not indicative of future results, and returns cannot be guaranteed as cryptocurrency values fluctuate based on market supply and demand. Do not invest more than you can afford to lose, and seek professional guidance if you are unsure about the suitability of a cryptocurrency investment for your specific situation.
Please refer to the General Risk Disclosures and Crypto Risk Disclosures on Altify’s website for more information. Investments should only be undertaken by individuals who fully understand these risks.
For additional details, please visit http://www.altify.app.
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