Alternative assets continue to draw attention. Accredited investors, family offices, qualified purchasers, and high-net-worth individuals are all interested in what alts can bring to their portfolios.

According to PwC, global assets under management are expected to reach $145.4 trillion by 2025, with alternative investments making up $21.1 trillion—15% of all assets.

This blog will explore the key trends in alternative asset investing, including the impact of emerging technologies, the rise of ESG investments, and the evolving role of cryptocurrency.

1)      Emerging Technology

As new technology continues to emerge within different industries, alternative investment within those industries can offer potentially attractive returns. Key areas to watch in 2024 include:

• AI, which is making operations faster and smarter in areas like finance and healthcare 
• Biotechnology, which is creating new treatments that improve how we handle diseases, is attracting lots of investment
• Advanced manufacturing, which is improving how consumer goods are made, is using more automation and greater precision

2)      ESG Investment

In 2024, Environmental, Social, and Governance (ESG) considerations have become increasingly important to investors.

A significant factor in this shift is the Great Wealth Transfer, with Baby Boomers beginning to pass down an estimated $84.4 trillion to Millennials by 2045.

Because of the Great Wealth Transfer, Millennials and Gen Z who prefer sustainable and socially responsible investments are becoming a stronger force in the market.

As a result, sustainable investment assets reached $17.1 trillion in 2020.  This trend is only expected to increase in the future.

If you want to learn more about how the Great Wealth Transfer might affect you, click here.

3)      Cryptocurrency

The cryptocurrency market is maturing, thanks to broader acceptance and more regulatory oversight. 

A key development was the SEC’s approval of a spot Bitcoin exchange-traded fund (ETF) in January 2024. The ETF lets investors have exposure to Bitcoin without owning it directly. Investors like this because of the added safety and liquidity. 

This approval could potentially drive prices up, although the regulatory environment is still evolving, with both positive and negative implications.

Investors might consider cryptocurrencies as part of a diversified investment strategy because of their potential for high returns and low correlation with traditional financial assets.

Crypto is a high risk investment so do proceed with caution.

What can I do now?

Key trends in 2024 include the emergence of new technologies such as AI, the rise of ESG investments, and the uptake in cryptocurrencies as an alternative asset.

If you want to learn more about any of these areas, explore our free resources – or try out our interactive quizzes.