Nickel: Growing confidence in crypto regulation
Confidence in regulation of the crypto and digital assets sector is rising with institutional investors and wealth managers increasingly confident the ‘bad actor’ risk is receding, according to new global research by London-based Nickel Digital Asset Management (Nickel), Europe’s leading digital assets hedge fund manager.
The study with organisations invested in the sector found 88% believe the risk of another FTX-style scandal has dropped with more than a third (35%) saying it has fallen sharply. A similar study in June last year found 75% believed the risk had dropped with 20% saying it had fallen sharply. There are still some concerns with 10% now saying the risk of another scandal has not changed and 2% believing the risk has increased. That compares with 18% saying the risk was unchanged in June last year and 7% saying the risk had increased.
Nickel’s research with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $1.1 trillion in assets shows confidence in regulators is positive for investment in the sector. Around 93% of institutional investors and wealth managers say regulators in general influence their investment decisions with 22% saying it significantly influences their decisions. Almost all (99%) believe regulators worldwide are committed to robust regulation in the sector.
Regulatory clarity from the US Securities and Exchange Commission (SEC) – which has now seen a change in leadership with the appointment of Paul Atkins as Chairman replacing Gary Gensler – is seen as central with 83% rating its future role as extremely or very important. Around 93% say it has been effective or very effective. However, the study found that European regulators have the most influence on investment decisions currently. Around a third (34%) rate Europe as having the most influence compared with 19% pointing to Asian regulators and 13% to the US and central and South American regulators. Around one in eight (12%) chose the UK and 9% the Middle East.
