Nickel: Crypto 'career risk' is falling, but regulation and liquidity are vital
The career risk for executives becoming involved in the crypto sector is falling since the election of President Trump but regulation and liquidity are seen as important to mitigating any career risk for investing in the sector.
The study with organisations invested in the sector found more than half (53%) believe the career risk for executives in the crypto sector has fallen under a Trump Presidency with 17% saying it has significantly reduced. Around a third (33%) say the risk has increased but just 1% say it has significantly increased.
Nickel’s research with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates with organisations who collectively manage around $1.1 trillion in assets shows there is a strong focus on regulation to mitigate career risk.
More than four out of five (83%) say it is extremely or very important in reducing career risk when investing in digital assets with 30% saying it is extremely important. However, the most significant factor in mitigating career risk from investing in digital assets identified by the study is improved market liquidity. Around 38% selected that ahead of 32% selecting greater institutional involvement and 17% choosing improvements to market infrastructure. Around 13% selected regulatory clarity.
Around half (48%) questioned say they expect more trading platforms in the sector over the next 12 months, which they expect will boost institutional involvement while 24% expect more regulatory clarity and 19% more custodial solutions. Around 10% say development in blockchain scalability will help increased institutional adoption over the next 12 months.
