Digital assets specialist firm Monochrome Asset Management has launched a education and research facility to address a knowledge gap it has identified among advisers with regard to investments in Bitcoin.
Monochrome Research is a new service the manager is offering free of charge, providing digital asset information to both advisers and investors covering common concerns, questions and potential misconceptions about this asset class, Monochrome head of distribution Craig Hobart told smstrusteenews.
“We’ve launched five ‘packets’ of information initially and we have more currently in production that will be released in the ensuing weeks and months,” Hobart said.
The topics covered by the initial release include the evolution of digital assets and Bitcoin, as well as how to value these specific items.
“We don’t actually provide a single solution to this issue, but we do share the different methodologies being used. It’s a bit like when you buy a share in a company you have different ways of valuing the company, whether it be using a price-to-earnings measure, internal rate of return, intrinsic value or a discounted cash-flow model,” Hobart noted.
“Everyone has their own method of valuing something and all we’ve done is shared what the industry is exploring in terms of different ways to determine a price point for Bitcoin.”
Other subjects Monochrome Research explores include digital asset regulation, how to access Bitcoin and the ethical considerations in discussion about Bitcoin between advisers and clients.
The establishment of Monochrome Research has come as a result of research the manager conducted among the advisory community about digital assets.
“We found that 77 per cent of advisers had had conversations with their clients about digital assets in the last 12 months and that 82 per cent of them, importantly, said they were not equipped to respond to that conversation,” Hobart said.
“So that yawning gap was the reason that Monochrome Research came into existence.”''