Asset Managers Continue to Invest Despite Depressed Crypto Markets and Regulatory Risks

Asset Managers Continue to Invest Despite Depressed Crypto Markets and Regulatory Risks


Asset Managers Actively Managing Digital Assets Regardless of Regulatory Uncertainty

Regardless of the unclear regulatory environment and the downturn in cryptocurrency markets, asset managers from the United States and Europe are showing continued interest in digital assets, according to a report by Coalition Greenwich and Amberdata. The report outlines that nearly half of the surveyed buy-side professionals from asset managers and hedge funds are actively managing digital assets. Furthermore, these managers anticipate whole lot of growth in the industry over the next five years, with over 40% projecting a compound annual growth rate of at least 11%. In addition, 25% of the corporations already have a digital assets strategy in place, and another 13% intend to unveil one in the next two years.

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Optimism and Opportunities in the Digital Assets Industry

Regardless of recent regulatory actions by the SEC against major cryptocurrency exchanges, asset managers remain optimistic about the expansion opportunities in the United States cryptocurrency market. They anticipate the development of a robust regulatory framework in the future. On the brighter side, most managers likewise expect centralized exchanges to expand in the coming years, regardless of a growing preference between investors for direct custody of their coins. The report outlines the evolving nature of the industry and managers’ enthusiasm for numerous use cases such as cryptocurrency portfolios, investment products, and the tokenization of financial instruments.

Hot Take: The Future of Digital Asset Management

The report’s findings indicate that asset managers are actively embracing digital assets and foresee substantial growth in the industry. Regardless of regulatory uncertainties and market fluctuations, they remain optimistic and anticipate the development of a favorable regulatory environment. This implies that digital assets are becoming an increasingly important part of investment strategies and portfolios. The emergence of new use cases and the  capacity for innovative products, such as ETFs and tokenized securities, further contribute to the positive outlook for the digital assets industry.

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Author – Contributor at Lolacoin.org | Website

Cora Skindell is a standout figure in the world of cryptocurrency analysis, research, and editorial expertise. As a seasoned crypto analyst and researcher, Cora’s insights delve deep into the complexities of digital assets, resonating with a diverse audience. Her ability to dissect intricate crypto concepts is complemented by her adept editorial skills, enabling her to distill complex information into easily understandable content.

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