Perception A: Investors with exposure to crypto assets are set to invest more

Perception A: Investors with exposure to crypto assets are set to invest more

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New global research by London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning, regulated digital assets hedge fund manager shows institutional investors and wealth managers with crypto holdings will boost investments in the year ahead as their short and long-term outlook on the sector turns more favourable.

Around three out of four (74%) of institutional investors and wealth managers with digital asset exposure plan to increase their allocations this year, the study with professional investors in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $816 billion in assets found. Within these as much as 13% plan increase investment 'dramatically'.

That is a turn-around from the previous 12 months, when just over half (52%) increased their level of investment in the sector while 38% reduced or completely sold out their investments in the market.

The change can be explained by the strong performance of the digital asset sector in the past year, with leading coins up strongly, but also by Nickel Digital’s new research. Around 87% questioned said current investment opportunities in the sector look attractive with 20% saying they were very attractive.

That outlook becomes even more positive in the long term, with 92% rating investment opportunities in the sector as attractive over five years, including 41% rating them as very attractive.

The table attached in the press release outlines which sector respondents believe will increase investment in the digital asset sector the most over the next three years. Sovereign wealth funds and pension funds were seen as the most likely to increase investment, but all sectors were rated as likely to increase investment levels.