Brava Finance: Asset managers predict boom in digital asset allocations

Brava Finance: Asset managers predict boom in digital asset allocations

Aandelen Technologie

More than 9 out of 10 institutional investors (pension funds, insurance asset managers, family offices and hedge funds) and wealth managers that are already investing in digital assets, say that digital asset adoption is now a strategic priority for their organisation, with 58% saying it is an urgent and immediate priority, new global research from Brava Finance shows.

More than four fifths (83%) have increased their digital assets allocations over the past 12 months. One third (35%) have increased it by up to 5% while 44% have upped their allocation by between 5% and 10%.

Bitcoin’s strong long-term performance despite recent volatility has increased the priority say 94% of investors and more than a quarter (27%) say it has triggered a serious, strategic reappraisal of policy, the study in the US, UK, UAE, EU, Brazil, Singapore, South Korea, Switzerland and Hong Kong found.

The research found almost all institutional investors and wealth managers (95%) either already have (29%) or are developing a digital asset strategy and allocations are expected to increase over the next 12 months.

Almost half (46%) will increase their allocations to digital assets by between 5% and 10%,  while more than a third (37%) expect to make increases of between 10% to 25%.

Improved risk adjusted returns is the primary motivator for starting a digital asset strategy today, say 59% of investors surveyed, closely followed by the fear of being left behind by those who have already implemented strategies (56%). Two other key factors are the search for diversified sources of yield (40%) and pressure from clients or trustees (40%).