Winners of the banking crisis: Bitcoin, art and fine wine

Wealthy individuals in the United States have been looking for new investments ever since the banking crisis broke out. According to CNN, art, expensive wines and Bitcoin are the clear winners so far.

1%

The ultra-rich, or the “one percent” (1%) as they are called in the United States, are clearly changing their investment profile now that the banking crisis is about a month old. The collapse of Credit Suisse in particular has caused wealthier families to diversify their investments once again. Even the Financial Times noted this week that bank deposits are down versus a month ago.

Expensive works of art such as paintings and sculptures are clearly on the rise. Wine cellars also see a real tree. But especially the rise of Bitcoin in recent months, according to CNN, is due to the fact that wealthier families now also understand it.

Bitcoin rose nearly 25% in the month of March alone and is now trading at a good $28,000, a level it hasn’t reached since the spring of 2022. By comparison, several tech stocks are still trading much lower than they were at the same time last year.

Art and fine wine

In addition to investing in Bitcoin, the ultra-rich also appear to buy art, classic cars, whiskey and wines.

Fine wine’s performance over different market backdrops demonstrate its ability to generate alpha and improve risk-adjusted returns in a diversified portfolio due to its stability and low correlation with the equity market.

Said CEO and co-founder of Cult Wine Investment Tom Gearing.

The annual Knight Frank Wealth Report explained how 39% of ultra high networth individuals will likely invest in wine this year.

Interest in alternatives is on the rise and will be where wealth is grown over the coming decade.

Said the report.