Institutional Investors and Wealth Managers Plan to Increase Crypto Investments, Research Shows
According to research conducted by London-based Nickel Digital, institutional investors and wealth managers with crypto holdings are looking to boost their investments in the cryptocurrency market in the coming year. The research indicates that their short and long-term outlook on the sector has become more favorable.
Nickel Digital Founding Partner Anatoly Crachilov stated that despite the expected positive impact of the SEC’s approval of spot bitcoin ETFs and the strong performance of the sector, the number of respondents intending to increase their crypto investments is still remarkable.
- Around 74% of institutional investors and wealth managers with digital asset exposure plan to increase their allocations this year.
- About 87% of surveyed institutional participants find current investment opportunities in the sector attractive, with 20% specifically stating they find them very appealing.
- In the long term, 92% rate investment opportunities in the crypto sector as attractive over five years, including 41% rating them as very attractive.
- 13% of professional investors in the US, UK, Germany, and other countries intend to “dramatically” increase their allocations to digital assets.
Wealth and Pension Funds Show Interest in Increasing Allocations
Sovereign wealth funds and pension funds are identified as the most likely institutional investors to increase their allocations into crypto. This is a significant shift compared to last year when institutions were still hesitant about committing to the market. According to Crachilov, sovereign wealth funds, pension funds, family offices, wealth managers, and hedge funds all expect to increase their investments in the short and medium term.
Hot Take: Institutional Investors Bullish on Crypto
The research by Nickel Digital provides further evidence of growing institutional interest and confidence in the crypto sector. With a majority of institutional investors and wealth managers planning to increase their allocations, it suggests a positive outlook for the future of cryptocurrencies. This influx of institutional capital could have significant implications for the market and contribute to its continued growth and development.
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