At P1 we believe that blockchain technology will revolutionise how governments, businesses and individuals store value, transfer value, store data, transfer data, prove identity, prove ownership and much more. The global megatrend that is blockchain adoption, which includes ‘cryptocurrency’ (which uses blockchain technology) and the creation of digital assets, continues to grow exponentially. Adoption is increasing across industries as the applicability of the technology is recognised. We believe that this trend represents a significant opportunity for long-term investors.
Our solution to provide you with exposure in this area is this exciting area is the P1 Crypto and Digital Assets Portfolio.
We believe that investors should be able to take advantage of the opportunities arising from blockchain and digital assets, and that is why we have created the P1 Crypto and Digital Assets Portfolio.
What is blockchain technology?
In simple terms, blockchains are digital ledgers of transactions and data recorded with an immutable cryptographic signature, which is distributed across the entire network of computer systems on a specific blockchain. They can be programmable (e.g., smart contracts), immutable (records are irreversible), secure (all records encrypted) and distributed (all network participants have a copy of the ledger for complete transparency). These attributes make the technology revolutionary across industries, from financial services to supply chain management, and its adoption is set to transform the way the world operates.
Blockchain presents a technological opportunity for businesses and investors.
We are not the only company recognising the opportunities that blockchain technology presents. Some of the largest companies on the planet are adopting and exploring the possibilities. Scroll through this list of just a few renowned companies engaging in blockchain technology and it becomes easy to see that the ‘crypto’ market is a technology revolution.
See our full list of adopters here.
Global payments giant Visa has acknowledged the pre-eminence of digital assets as a form of payment. Visa’s crypto solutions and capabilities can help businesses evaluate and capitalize on the growing interest in crypto.
International investment house, managing over $3 trillion as of December 2021, launched their own coin Onyx a permissioned system that serves as a payment rail and deposit account ledger, facilitating the movement of liquidity funding and payments in right time.
Global IT infrastructure giant Oracle, now offers blockchain adoption to clients, allowing secure collaboration, and tamper-resistant tables between multiple parties, in real-time.
In 2021 the EIB issued its first ever €100m digital bond on the Ethereum Blockchain with lead managers being Goldman Sachs, Santander and Societe Generale.
IBM are working with visionary companies who are coming together to transform the way their industries work with the help of IBM Blockchain. From a food supply that’s becoming safer, smarter and more profitable to supply chains freeing themselves from legacy processes and paperwork, IBM is leading the business world into a new era of collaboration and innovation.
The P1 Crypto & Digital Assets Portfolio
P1 have launched the Crypto and Digital Asset Portfolio to meet the demand of investors looking to take advantage of the potential in this technology. Invested in listed shares, ETFs, investment trusts and other instruments that provide exposure to this market.
The portfolio’s objective is to provide investors with exposure to the price movements of cryptocurrency and digital assets over the long term. Exposure to this global megatrend captures underlying investment themes related to the evolution of global financial infrastructure, social change, climate change, the digitisation of assets and democratisation of data. The portfolio does not currently invest directly into cryptocurrency assets but may do in the future when regulation allows.
The portfolio will be invested into assets that have price and fundamental exposure to the crypto and digital asset market, including listed shares, ETFs, investment trusts and other instruments that allow us to achieve such exposure. As a rapidly developing market, the portfolio will evolve to take advantage of new products and companies that best allow us to gain exposure and add value to investors. The portfolio is primarily exposed to Bitcoin related activities, which, as the dominant digital asset is the most openly available exposure. However, we will look to add diversification across a wider range of crypto and digital assets over time.
The direct equity exposure of the portfolio will contain companies that have tangible exposure to crypto activities, such as mining, brokerage, and decentralised finance. Many of these companies also have direct holdings of cryptocurrencies. This element will make up approximately 50% of the portfolio.
The remainder of the portfolio will be invested in thematic investments, that give investors exposure to companies embracing blockchain technology and cryptocurrency. We will look to evolve this element of the portfolio over time as a greater range of products become available. We will also look to add direct Bitcoin and alternative cryptocurrency price exposure to the portfolio through listed instruments such as ETFs, as they become available to UK investors.
The portfolio is designed for investors looking to obtain exposure to this long-term megatrend and are comfortable with potentially high levels of volatility in the short-term. Investors should be able to tolerate large and frequent fluctuations in the value of their investment and who understand that this is a long-term investment (5-years +). The portfolio will be diversified to limit the potential for real long-term capital loss and there will be a focus on portfolio liquidity should an investor need to exit their position.
What this is not? A speculative cryptocurrency investment. We are investing in the fundamental technology that underpins the emergence of cryptocurrencies and blockchain and distributed ledgers. We are not looking to find the next “trend” cryptocurrency that’s “going to the moon”. We are investing in the projects and companies that are forming the foundations and building blocks of blockchain technology.
Who is the P1 Crypto & Digital Asset Portfolio for?
Investing in opportunitiesInvestors looking for exposure to the long-term megatrend of blockchain adoption, Bitcoin price, and the wider cryptocurrency market.
Long-term InvestorsInvestors with a long-time horizon (5-years +), as this is a developing market and nascent technology.
Calm InvestorsInvestors comfortable with high levels of volatility in the short-term.
Diversified InvestorsInvestors looking for a diversified portfolio of investments providing broad exposure to this market and companies embracing the technology.
Download the P1 Crypto & Digital Asset Factsheet
Is it regulated?
Yes. P1 are regualted by the Financial Conduct Authority, FCA Number 752005. The portfolio does not currently directly hold cryptocurrencies.
Does it directly hold cryptocurrencies?
No. The portfolio will be invested in securities that have price and fundamental exposure to the crypto market, including listed shares, ETFs, investment trusts and other instruments that allow us to achieve such exposure.
Am I proteched by the FInancial Services Compensation Scheme (FSCS)?
Yes. As a regulated investment management company, you are protected up to the sum of £85,000. You can find out more on the FCSC website.
Is it volatile?
Yes. Technology and cryptocurrency markets are known to be more volatile than traditional equity markets. While not directly exposed to cryptocurrencies, the investments in the portfolio can be as volatile as their underlying holdings. Investors need to be aware and comfortable this is a long-term investment and day to day price changes could be large.
Where can I access the portfolio?
The portfolio is accessible on the P1 Platform and can be held within a general investment account, ISA, or pension account.
Is my investment guaranteed?
No. Performance is not guaranteed, and past performance is not a guide to future returns. The portfolio is likely to be highly volatile in the short-term. Whenever you make an investment there is always a risk of capital loss. If you ever see an investment marketed as having guaranteed returns, it is highly likely to be a scam as nothing is ever 100% guaranteed.