Asset Managers Adopting Cryptocurrency Assets: Nearly Half Now Manage Digital Assets
A recent study conducted by digitalย currency data provider Amberdata and Coalition Greenwich outlines that 48% of institutional investors are now managing digital assets. Regardlessย of recent market volatility, growth forecasts for the industry remain strong. Over the next five years, three-fourths of asset managers expect the assets under management (AUM) for digital assets to expand, with over 40% predicting wholeย lotย of growth of 11-20% or more.
The report outlines that asset managers recognize the growing market opportunity in managing digital assets. Around 44% of them anticipate digital assets to become a growing business line in the next 3 to five years, aiming to outperform overall market growth. Inย addition, the study impliesย that dedicated digital asset believers are more positive about theย present state of adoption.
Various strategies are being employed, including active and passive funds, arbitrage, and deal financialย resources plays. The most trending instruments are exchange-traded products, stablecoins, and digitalย currencies. Tokenized securities and real-world assets are identified as upcoming offerings.
Unitedย States Regulation Crucial for Managers
The report emphasizes the importance of the Unitedย States market, with asset managers betting on constructive cryptocurrency regulation within the next five years. The Unitedย States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are viewed as providing positive opportunities in the long run. Nonetheless, asย ofย now, overseas hubs like Dubai and Switzerland are drawing more interest.
The study likewise outlines that infrastructure, including well-regulated custody, is critical for the ecosystemโs development. It predicts an increase in spending on cryptocurrency market data, blockchain analytics, and portfolio systems in the monthsย ahead. As the industry matures, asset managers are more likely to seek partnerships and outsourcing rather than building capabilities internally.
Hot Take
The study outlines a wholeย lotย of shift in the asset management industry as nearly half of institutional investors are now managing digital assets. This trend is expected continuation with the bulkย of managers foreseeing expansion in the assets under management for digital assets. As the industry matures, regulatory clarity and infrastructure development will play critical roles in attracting more asset managers. The report outlines the growing demand for data, analytics, and tools toย facilitate front-office professionals, suggesting that the industry is preparing for further growth. Overall, the study indicates a growing acceptance and adoption of digital assets between asset managers.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.
