New global research by London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning, regulated digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, reveals growing mainstream acceptance of digital assets.
Nearly nine out of 10 (87%) of institutional investors and wealth managers questioned believe digital assets have an important role to play in diversified investment portfolios, the research found, with half (50%) saying digital assets should represent a moderate portion of portfolios.
Nickel’s study with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $816 billion in assets found 23% believe digital assets should only represent a small part of portfolios while 16% say they should form a significant part of portfolios.
Around 10% questioned said digital assets should only be included in diversified investment portfolios for specific investment strategies.
The acceptance of the role of digital assets in diversified investment portfolios shows how institutional investor and wealth manager views are changing and that is reflected in forecasts of the launch of new digital asset funds.
Nearly two out of three (63%) questioned expect a rise in the number of new funds focusing on digital assets and cryptocurrencies over the next 12 months with 24% forecasting a dramatic increase. Just 6% expect a slight decrease in the number of funds in the next 12 months.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “The recent strong performance of digital assets highlights the role they can play in diversified investment portfolios, underlining the renewed interest in the asset class from institutional investors and wealth managers.
We have no doubt that the SEC’s approval of Spot Bitcoin ETFs has played a role in the acceptance of digital assets as the barriers of inclusion have been dramatically lowered.”
