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As for bitcoin's price at year-end – no one knows, and a fixed prediction would be completely unsensible.

«Some investors feel this is a lawless space»

We do assume that 2018 will be a key year for the industry, and expect a recovery in financial markets in the second half of the year. We will publish a study in coming days which puts the current bitcoin price into perspective and raises critical questions about current levels. The study will be available on our website.

Apparently some traders have manipulated the price of cryptocurrencies, with the knowledge of at least some of the industry for some time. How does this affect Vision& is designing investment products?

Investors in the crypto market have to abide by the same rules as in traditional markets. Certain investors seem to have the feeling they are operating in a lawless space – which is wrong.

There are existing regulations which apply for trading in the crypto market and investors who don't understand that should be punished. This is the only way for the market to mature. In choosing our investment products, we evaluate the ecosystem as well as the regulatory risk of projects. We only invest when these criteria can be addressed to our satisfaction.

Like gold, bitcoin and company don't pay interest: investors only win returns when prices rise. Why should they invest in this type of assets at all? 

The same reason they invest in commodities, gold or art, all of which don't pay interest or dividends, but still enjoy intense interest from investors. The reasons are multi-faceted and rarely have to do with speculative buying – for example diversification, hedging in times of crisis, or simply love for a certain product. 

«Many cryptocurrencies aren't currencies at all»

We also need to remember that many so-called cryptocurrencies aren't actually currencies, and shouldn't be branded as such. Many crypto investments are directly linked to the underlying blockchain protocols. Demand for these protocols can for example lead to higher demand for the crypto asset, and thus to a price rise which can be explained. The statement that cryptocurrencies aren't of fundamental value isn't true at all in many cases.

How can you invest in blockchain technology without actually buying tokens? 

One way is to invest in listed shares of specific blockchain firms, which are almost inexistent. That leaves start-ups. Those involved in blockchain generally finance themselves by issuing crypto assets through an initial coin offering instead of shareholder's equity.

This isn't just because of the attractive capital-raising conditions but also because firms can build up an entire community of users and brand ambassadors at the same time as raising funds. Thus an investor who wants exposure to blockchain technology won't be able to get around crypto investments. Firms like ours exist because the market requires a high level of technical understanding and can feel like the wild west for traditional investors.

Lidia Bolla has been CEO of Zug-based Vision&, a self-regulatory organization, since August. Previously, she held various roles in asset management at J.P. Morgan, Swiss Re, and Man Investments in Zurich, London and Hong Kong. Bolla has a PhD from the University of St. Gallen, specialized in asset management.