After an unsurprisingly difficult 2020, this year is set to show solid growth in crypto-related mergers and acquisitions, according to extensively quoted research from PWC. The data shows that the crypto M&A sector more than doubled last year to $1.1 billion from 2019 figures. This year’s surge in crypto prices is leading a major boom in sector activity.
Still, Europe and Asia together, as EMEA region, generated $303 million in crypto M&A deals, said PWC.
Henri Arslanian, global crypto leader of PWC, highlighted the fact that 2020 numbers posse a record for the sector. However, he added that 2021 is on track “to significantly surpass it from every single metric.”
The study says that findings suggest crypto’s market is increasingly expanding and confirms the widespread endorsement from large investors worldwide. Moreover, PWC foresees that the crypto industry would become “more institutionalized” at some point.
The firm backs up its claims with the all-time highs seen in the bitcoin (BTC) prices across the board this year, reaching levels above the $60,000 threshold.
Also, PWC believes that noise surrounding central bank digital currencies (CBDCs), stablecoins, and non-fungible tokens (NFTs) helped to boost such deals.
Interestingly, the report is quite optimistic in comparison with the one published in mid-2020 by the firm. At that time, crypto M&A deals plummeted from $1.9 billion (2018) to $451 million (2019).
Latest Loan Offer
The latest loan offer on site has an A-rating and an annual rate of interest of 7 per cent. The term of the loan is 24 months. The offer is currently 51 per cent filled.
Historical Performance And IFISA Process Guide
That figure is the result of over £20 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.