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 Despite Regulatory Uncertainty

Despite the unclear regulatory environment and the downturn in crypto markets, asset managers from the US and Europe are showing continued interest in digital assets, according to a report by Coalition Greenwich and Amberdata. The report reveals that nearly half of the surveyed buy-side professionals from asset managers and hedge funds are actively managing digital assets. Furthermore, these managers anticipate significant growth in the industry over the next five years, with over 40% projecting a compound annual growth rate of at least 11%. Additionally, 25% of the firms already have a digital assets strategy in place, and another 13% plan to unveil one in the next two years.

Optimism and Opportunities in the Digital Assets Industry

Despite recent regulatory actions by the SEC against major crypto exchanges, asset managers remain optimistic about the growth opportunities in the US crypto market. They anticipate the development of a robust regulatory framework in the future. Surprisingly, most managers also expect centralized exchanges to expand in the coming years, despite a growing preference among investors for direct custody of their coins. The report highlights the evolving nature of the industry and managers’ enthusiasm for various use cases such as crypto portfolios, investment products, and the tokenization of financial instruments.

Hot Take: The Future of Digital Asset Management

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

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